Tax on letting income

mungo_55

Hello,

I'm just about to let my flat as I've got to move to another part of the country for my work.

Can somebody tell me if I am right in thinking that when working out the amount of tax I need to pay on the income from the flat, I can deduct the interest I'm paying on the mortgage for the flat ?

Any advice much appreciated

Tweetinat

AFAIK that is correct, yes.

silvercar

yes you can.

squishyclaire

I have a similar query to Mungo aboveabout the tax liabilty on this type of income. If you rent out a property how do you go about announcing tax on rental income? Is this counted as income and therefore you need to fill in a tax return? Is there somewhere I can get advice on this. What other charges could be deducted from the rental income?

Can anyone help as hoping to rent out property.

Rabiddog_2

Ask the friendly revenue.. yes they are friendly and no they dont take your name down and put you on a list. You're already on a List anyway. Remember its only the interest NOT the capital repayment, that you can claim relief on. (looking into this myself)

IveSeenTheLight

squishyclaire wrote: »

I have a similar query to Mungo aboveabout the tax liabilty on this type of income. If you rent out a property how do you go about announcing tax on rental income? Is this counted as income and therefore you need to fill in a tax return? Is there somewhere I can get advice on this. What other charges could be deducted from the rental income?

Can anyone help as hoping to rent out property.

Sorry, dont have time to give a full response but there are many things that can be deducted from the rent received before any tax is calculated.

Interest on Mortgage
Maintenance (replacement fittings / costs)
Advertising fees
LA fees
Services
Factor fees
etc
etc
etc

You should speak with a tax advisor to get the full lowdown.

Also, if you make all your deductions and actually make a loss, this can roll over for up to 5 years against any profit made

silvercar

There is a separate section of the tax return that deals with land & property. All self explanatory and easy to complete. Its available online if you do self assessment.

sleepymans

Unless you get a self assessment form it is just as well not to set a hare running!
When I was in this position I just wrote to my tax office and did a little calculation of what I thought was due and as it was a relatively small annual sum (in my case about £2k p.a. net) They would then just adjust my tax code for the following year to ensure I paid the correct additional tax due.

I always found the Revenue very reasonable if you are honest and open with them.
By the way the only reason I didnt want a self assessment form as my only other income was taxed at source by my employer or savings interest deducted at source so filling in a huge form every year would be time consuming and pointless.

mungo_55

Thanks for the replies. Its a big weight off my mind knowing I can offset the interest repayment part of my mortgage !

chappers

there are two things here though you must check with your mortgage company that they will let you rent the property(if not switch) and also, unless you are happy paying the repayment part of your mortgage out of the rental income with no offset against tax, change your mortgage to interest only.