How much tax will I have to pay

pope

Property being rented for £950 pcm

Estate agent fee 12% of rental income = £114 

Intrest only mortgage £300 a month

Yearly tax free allowance £12570

Yearly salary income £ 7280

Can someone tell how much tax I will have to pay as a estimate please?

Thanks

FlorayG

950-114= 836 THE MONEY YOU RECEIVE
836X12= 10,032 the total received for the year
10032+7280= 17,312 total income including your salary
17,312 - 12,570= 4742 less your tax free allowance
4742 X 20% = £948.40 to pay in total

I think that's correct

theartfullodger

There are more than 10 taxes a landlord may have to pay (e.g. income tax, CGT, IHT, council tax etc etc etc...)

pope

FlorayG said:

950-114= 836 THE MONEY YOU RECEIVE
836X12= 10,032 the total received for the year
10032+7280= 17,312 total income including your salary
17,312 - 12,570= 4742 less your tax free allowance
4742 X 20% = £948.40 to pay in total

I think that's correct

I have read somewere online that because mortgage interest could be deducted before but not anymore since 2021 there is a 20% tax relief. 

sheramber

You can claim  a tax credit for your mortgage interest. This restricted to  20% of the amount paid and is deducted from the tax due. 

Bookworm105

FlorayG said:

950-114= 836 THE MONEY YOU RECEIVE
836X12= 10,032 the total received for the year
10032+7280= 17,312 total income including your salary
17,312 - 12,570= 4742 less your tax free allowance
4742 X 20% = £948.40 to pay in total

I think that's correct

you have missed off mortgage interest tax credit 

OP states interest only mortgage 300 pcm so annual interest 3,600
3600 x 20% = 720

net tax due 948.40 - 720 =  228.40

OP if you have gone into the lettings business but don't know this sort of basic stuff then, as artfull, says, what else have you overlooked?
Work out your rental income when you let property - GOV.UK

ReadySteadyPop

theartfullodger said:

There are more than 10 taxes a landlord may have to pay (e.g. income tax, CGT, IHT, council tax etc etc etc...)

CT is only during void periods.