Buy to let tax

[timd77]

Hi all, just wondering if anyone is in a similar position to me and has any advice/experience of how to deal with this?

I own a flat which I used to live in and now rent out. I receive £475 a month in rent, mortgage is around £300. Ground rent and service charges are approx £600 a year.

How do I go about declaring this income and what’s the best way of keeping the tax liability as low as possible?

 

[rudebhoy]

Hi all, just wondering if anyone is in a similar position to me and has any advice/experience of how to deal with this?

I own a flat which I used to live in and now rent out. I receive £475 a month in rent, mortgage is around £300. Ground rent and service charges are approx £600 a year.

How do I go about declaring this income and what’s the best way of keeping the tax liability as low as possible?

I own a holiday let, so not quite the same, but you should set as much expenditure as possible against your income. you can claim mileage for visits, decorating costs, replacement of any fixtures and fittings, insurance, advertising etc etc

 

[Piece]

Hi all, just wondering if anyone is in a similar position to me and has any advice/experience of how to deal with this?

I own a flat which I used to live in and now rent out. I receive £475 a month in rent, mortgage is around £300. Ground rent and service charges are approx £600 a year.

How do I go about declaring this income and what’s the best way of keeping the tax liability as low as possible?

As posted already, you need to declare via self assessment.

There are lots you can claim back, such as expenses, maintenance items, furnishing, etc. for the flat, but do read the fine print. You can fill in the SA form and adjust numbers in different fields to see what your liability could be, before you actually submit. Just don’t make up numbers to lower your liability, it’s not worth fiddling the taxman!

 

[timd77]

Thanks all ??

 

[Deleted member 1147]

Use a good accountant, is the best advice I can give.

 

[rudebhoy]

Use a good accountant, is the best advice I can give.

A bit OTT just for declaring rental income on your SA return. It's pretty easy to establish what you can and can't claim as expenditure, don't really think he needs to rack up the expense of hiring an accountant. Am sure there will be plenty of forums out there for small time landlords where he can get good advice.

 

[Deleted member 1147]

A bit OTT just for declaring rental income on your SA return. It's pretty easy to establish what you can and can't claim as expenditure, don't really think he needs to rack up the expense of hiring an accountant. Am sure there will be plenty of forums out there for small time landlords where he can get good advice.

Yet I see clients previous returns (prepared by themselves) and see how many errors they make, and how my bill is a often lower than the lost tax relief and penalties incurred these errors can lead to.

 

[Deleted member 1147]

Is the mortgage interest only?
How much is actually claimable?
https://www.which.co.uk/money/tax/i...age-tax-relief-changes-explained-atnsv0j6j782

 

[GG26]

As James R has highlghted you cannot claim the mortgage payments as a deduction. It's just the interest element of those payments that are deductible. In addition, if you are a higher rate tax payer then the relief for the mortgage interest is restricted, which is something new brought in a few years ago.