We our renting our house out for the open golf help with tax please

sarahlouise210

This would be classed as unearned income - your property is not available to rent for long ebough to qualify as a holiday letting (and in any case is not worth anything really as you would have no depreciation in such a short time) You can claim your estate agent fees. I would be surprised if any allowances would be made for your purchases as you will be able to use everything afterwards - at the end of the day you will still make a good profit on the 10 days. Dont forget to let HMRC know if you will be doing the same next year as they may just assume you will and will send you a tax return and possibly a payment on account demand that may not be necessary. Well done for using your initiative!

whatatwit

You are wise in wanting to declare the income, usually letting agents for events such as this send a list of the properties they handle to HMRC.

It's common practice for golfers and their families to rent a house, far easier and often cheaper than being in a hotel.

Nick1969

Can renting my house out be covered by the rent a room tax allowance? Thats about £4k a year isnt it? how will they really know if Im moving out or if Im renting a room?
Does anyone know?

If Im a low wage earner and not paying the normal 40% tax do I still have to pay 40%?

Nick1969

Does anyone know?

Ian_W

Nick1969 wrote: »

Can renting my house out be covered by the rent a room tax allowance? Thats about £4k a year isnt it? how will they really know if Im moving out or if Im renting a room?
Does anyone know?
If Im a low wage earner and not paying the normal 40% tax do I still have to pay 40%?

I think they might guess that £3K for 10 days rental isn't renting out a room, don't you? "They" don't have to prove anything, you have to account for your income and a false declaration can lead to quite severe penalties.

As for 40% being "normal" tax, well you need to earn the thick end of £40 grand a year to be in the higher tax bracket which is 40%, most people on average [and even above average] income pay 20% tax.

sandiep

OK

This I know about!! We do it too.

The R&A use only one letting agent per year, and presumably you are letting through this agent. The revenue will, one way or another, end up with a copy of this list of who has let, and so, if you've not declared it, the chances of being caught are fairly high.

Income from Property is Schedule A. You can claim against this any costs that you have to incur relating to the rental, however be sensible, imagine that you have to explain/justify each to an inspector.

The agents do require you to have SKY, a DVD recorder, Broadband etc . A proportion off all of these costs can be claimed. Similarly they require you to have 2 complete sets of excellent conditioned bedding etc. So these costs can be allowed, together with deductions for the agents commission, any other expenses that you incurr.

This is just taxed as your income, with your normal income tax rates applying.

I hope this helps.

Kind regards
sAndra

Nick1969

Thanks Sandra. I wont rest until Ive declared it.

whatatwit

Nick, I would work out the details of expenses etc now whilst it is all still fresh. Then when you come to complete your return, the details are all to hand.
Did you get anyone famous staying

Patricia37

I'm thinking of renting my own home for the ryder cup to make an extra few bob. It will give me an excuse to do the big clean up I've been putting off for weeks now.

Edit:
Well if anyone is interested I put my house up for rent and you can view it on this website http://www.accommodationfortheevent.com/rydercup/rentals/?event=2010

Fingers crossed !!!

[Deleted User]

Nick1969 wrote: »

We are renting out our house for 10 days as a one off. Never done it before so Im not sure how we stand on tax.

I am employed part time, my husband is self employed. Our joint household income is £15K.

We are living in our caravan whilst we rent out.Meanwhile I need to pay for a Gas inspection,Pat testing, towels, bedding, broadband, sky TV etc.We are also finishing off our bathroom for the rental.

We are going to get £3000. After the agent takes off their comission.

What should we do? can we offset the items above, that we have needed to purchase?

We are also hoping to put the net money back into our property,by building a granny flat type of thing for our teenage son.

Who did you advertise it with / use as agent?

It seems there are tons of websites offering to advertise your house for £100+. I'm just a bit dubious...