Predicting how much tax I'll pay from my rental this current financial year

Dazed_and_C0nfused

There seems to be two potential issues here (assuming there are finance costs involved).

Either you have claimed more expenses than you should which means your profits will be larger than you've stated.

Or you have claimed the correct expenses but need to deduct the fiance costs tax deduction from the £1,521.

Bobby_Peel

Is there a limit on expenses?

My deductions are my letting fees which are £960 a year and I’ve spent around £1600 on the property through repairs.

Thanks

Dazed_and_C0nfused

I was referring to including fiance costs in error.

If you had fiance costs and correctly didn't include them in the expenses then you could have a tax deduction which will reduce the tax payable.

Have a read of the link in my earlier post.  Or the notes which help you complete your return.

Or maybe you don't have finance costs???

Jeremy535897

Bobby_Peel said:

Jeremy535897 said:

£51,357- £50,270= £1,087 at 40% = £43.48, £6,957-£1,087=£5,870 at 20% = £1,174, total £1,217.48 (might be a little more due to coding roundup), assuming you claim the photography loss against other income in 2021/22 (and therefore don't use the cash basis). Good time to buy a nice new camera for around £1,087?

I think this is exactly what I was looking for. So just so I'm sure how it's worked out is...

£51,357 (Total earned) - £50,270 (Tax Bracket) = £1,087 (Amount at 40% Tax Bracket) at 40% = £434.8
£6957 (Rental & hasn't been through Employee and needs submitted) - £1,087 (Amount over tax bracket) = £5870 @ 20% = £1087 + 434.80 = £1521.80

So its £434.80 which is at 40% and working out the difference at 20% to pay which is £1087?

Yes, sorry I got the decimal point one out.

Bobby_Peel

Dazed_and_C0nfused said:

I was referring to including fiance costs in error.

If you had fiance costs and correctly didn't include them in the expenses then you could have a tax deduction which will reduce the tax payable.

Have a read of the link in my earlier post.  Or the notes which help you complete your return.

Or maybe you don't have finance costs???

Thanks I will do, this is what I leave my accountant to work about as you can see, easily confusing!

Bobby_Peel

Jeremy535897 said:

Bobby_Peel said:

Jeremy535897 said:

£51,357- £50,270= £1,087 at 40% = £43.48, £6,957-£1,087=£5,870 at 20% = £1,174, total £1,217.48 (might be a little more due to coding roundup), assuming you claim the photography loss against other income in 2021/22 (and therefore don't use the cash basis). Good time to buy a nice new camera for around £1,087?

I think this is exactly what I was looking for. So just so I'm sure how it's worked out is...

£51,357 (Total earned) - £50,270 (Tax Bracket) = £1,087 (Amount at 40% Tax Bracket) at 40% = £434.8
£6957 (Rental & hasn't been through Employee and needs submitted) - £1,087 (Amount over tax bracket) = £5870 @ 20% = £1087 + 434.80 = £1521.80

So its £434.80 which is at 40% and working out the difference at 20% to pay which is £1087?

Yes, sorry I got the decimal point one out.

My accountant got similar results but you explained it a lot easier which was a massive help. Now I know where I stand each year now doing the estimated calcs. Thanks again