Self employment rental income query

Newheight13

Hi guys, 

I’m filing my second tax return for holiday  income I receive. I want it to use the earnings towards the mortgage affordability on our next mortgage. 

I’m still awaiting on the VOA to advise on business rates, where the council tax will be nil; where as at the moment it’s £3800 a year.  I’ve put this as an expense of my tax return for now - do I just amend it once I’ve had the refund? Part of me wants to exclude it from my tax return for now because that £3800 is going to impact my affordability on the mortgage application. 

Thanks 

theartfullodger

Which country please ?? (eg NI, Wales??)

Researched tax & allowances for (I presume) holiday lettings?? 

Have you identified a lender who will allow holiday let income for mortgage calculation please??

Bookworm225

you could declare that you have used estimated costs on your tax return given you won't know your trading profit until until you get a business rating (and from date that applies)

not sure i understand how that helps your mortgage affordability since one cost will be replaced by another,

anselld

Bookworm225 said:

you could declare that you have used estimated costs on your tax return given you won't know your trading profit until until you get a business rating (and from date that applies)

not sure i understand how that helps your mortgage affordability since one cost will be replaced by another,

Once business rating is given the OP will apply for small business rates relief to reduce liability to zero.

OP, the VOA will apply the rating *after* all the criteria are met so at least 140 nights available in Englad or 252 in Wales.   You will still be liable for Council Tax during the qualifying period.

Also, note the ending of the FHL tax regime at April 2025 so your income going forward may be reduced by removal of full finance cost relief, etc.

Newheight13

Thank you for the replies. I was told that I would be refunded for the qualifying period, as long as the conditions were met🤔