Hayley - Tuesday, June 1st, 2010

Hi, my partner needs to do a tax return as he rents out his house, this is the first tax return as only renting house out since Aug 2009, the house is jointly owned with his ex wife, however he pays the mortgage and receives the all the rental money, she has no involvement the only reason it is still jointly owned is that it was decided to rented out due to the housing market being down, can he just do the tax return or does his ex need to do one as well?

TaxFix - Tuesday, June 1st, 2010

Hayley: As your partner is receiving the rental income for the property he can do the tax return. We would be more then happy to help your partner with his tax return and give him specific advice.

Richard - Thursday, June 3rd, 2010

Hi, I currently complete a tax return for a property I rent out which has the mortgage in my name only. My wife also has a rental property and is in the process of remortgaging – to qualify for the best rate we need to change the mortgage into joint names. My question is, as she receives the rent into her account, would I have to include a ‘portion’ of her rental income on my tax return or can she still do the whole return herself? Thanks.

Kate - Tuesday, June 15th, 2010

I have 6 domestic properties which i rent out. I am not a letting agent, i work from home and am a landlady. On my tax returns, is my business trade classed as a business or classed as rental income only. Thanks

TaxFix - Tuesday, June 15th, 2010

Kate: Renting a property is classified as a business.

Loz - Thursday, June 24th, 2010

I will be renting out my house shortly. The rental income does not cover the mortgage so I will not be making any profit. Do I still need to inform HMRC? Thanks.

TaxFix - Friday, June 25th, 2010

Loz: If you’re employed, and your taxable income from property is less than £2,500, your tax code can be adjusted to collect the tax on your property income each year. Ask your Tax Office to send you form P810 to report your income each year.

Anonymous - Tuesday, July 6th, 2010

Is there a certain amount of tax free income that we can receive on rented property?

bunty - Wednesday, July 7th, 2010

my son rented out property but lives with us he gets £200 in pocket per month but hes income ending april 10 was £6000 does he need to pay tax on £200 please reply thank you

TaxFix - Thursday, July 8th, 2010

bunty: Normally if you rent out property and receive an income from this you need to let the Inland Revenue know. Sometimes you do not need to do a tax return and your tax code can be adjusted instead. If you need help with your property we offer a service here:

lisa  - Friday, July 9th, 2010

My partner rents his property out and uses a letting agent to look after this, does the letting agent deal with the tax side of things?

TaxFix - Saturday, July 10th, 2010

lisa: If you are renting a property you need to let the Inland Revenue know that you are receiving this income. This is usually done through a tax return.

Anonymous - Tuesday, July 13th, 2010

I have a property I rent out, it has consistently lost money so I havent bothered notifying Inland REvenue, but I guess I should, it has been rented for 3 years.

What do I need to do, will I get into trouble?? I can draw up the accounts myself as they are simply, I was going to claim a deduction of £200 a year for mileage, 10% of annual rent due for wear and tear (about £600), the buildings insurance and cost of Gas Safety Certificate, and thats all.

Going to do it on a cash basis with when rent was received. Mortgage is on interest only, so will be a simple money in money out excercise.

Its exactly 3 years, would I draw up 3 sets of accounts, or 1 to cover whole period.

Nev - Thursday, July 15th, 2010

I am currently renting out a property for £850 per month, with mortgage plus landlords insurance costing me £817.25. Therefore I am “earning” net annual income of just under £400 before repairs, gas safety certificates, etc. I always thought it was the “net” income that the inland revenue was interested in – do I need to inform them of anything yet or am I earning below the requirement for declaration? This is the 3rd year I am renting out the property and, with letting agency fees included, I have probably made a maximum of £500-£600 over the 3 year period (if that!). I have a separate account set up where rent is paid into and the mortgage goes out of and have various documents detailing letting agency costs. Do I need to do anything?

TaxFix - Saturday, July 17th, 2010

Nev: Letting residential property is treated as running a business. If you’re employed, and your taxable income from property is less than £2,500, your tax code can be adjusted to collect the tax on your property. If you are not employed or your profit is greater than £2,500 you will need to let the Inland Revenue know about this profit via tax return.

Ian - Sunday, July 18th, 2010

I am filling in my tax return, what box on the tax return form should i put gas & electric safety certificate costs under?

Alan - Monday, July 19th, 2010

I have sold a property I rented. There is CGT liability at 18% but when added to my income tax liability, the total falls below my personal allowance. Is there any tax to pay?

TaxFix - Tuesday, July 20th, 2010

Alan: The CGT yearly allowance is currently £10,100

Alan - Tuesday, July 20th, 2010

After £10,100 CGT allowance still left with CGT to pay @18%. When this CGT is added to taxable income the total is still below personal allowance for 65+ of £9490.
Hence the question Is there any tax to pay?

TaxFix - Wednesday, July 21st, 2010

Alan: The income tax allowance and the CGT allowance are seperate and not combined.

Anonymous - Thursday, July 22nd, 2010

I am returning to live in a property I have rented for 13 years, I am having to refit a new kitchen, new bathroom, new flooring throughout the house, my question is – What will I be able to claim as expenses on my last tax return?

Laura Bradshaw - Wednesday, August 4th, 2010

Hi

I am letting my house out for £450 a month but the mortgage is £600 alone interest only without taking off all the extras you can to bring it down which means i am in mega minus figures!
I understand that they can change your tax code but will i have to pay tax when i am running at such a loss?

thanks

Joe - Wednesday, August 4th, 2010

My son is about to rent out his house. He anticipates that the total expenses (mortgage interest etc.,) he is allowed to claim will exceed his rental income thus making a loss each tax year. He is employed. Will his tax code be adjusted/increased by the tax office in the following tax year to take account of the loss in the previous year?

TaxFix - Wednesday, August 4th, 2010

Laura Bradshaw: You only pay tax on the profit from renting your property, so in your case where the expenses are greater than the income no tax will be due.

TaxFix - Wednesday, August 4th, 2010

Joe: If you are renting out property your tax code can sometimes be adjusted to take into account any profit you are making on your rental properties. If you are making a loss on your property, your tax code does not need to be changed.

Rick - Sunday, August 15th, 2010

I have rented out my house for £1,050 pcm & am now living in rented accom with my girlfriend, paying£950 pcm. Is only the difference (£65) liable for tax purposes?

Caroline  - Monday, August 16th, 2010

My son rents my property, his housemate has left and am only going to charge him half the rent. £160 per minth. Do I need to declare this? I am self employed in the main anyway so complete a tax return

TaxFix - Monday, August 16th, 2010

Rick: You can deduct any allowable expenses such as mortgage interest of the rented property, but not your own rent.

TaxFix - Monday, August 16th, 2010

Caroline: Yes, you need to declare, and pay any tax on the profit you make from your rental income.

GS - Wednesday, August 18th, 2010

My wife and have a joint mortgage on a flat we would like to let. My wife is currently not in work and we would be looking to establish the renting of the flat as a business in her name only. I assume the net profit would be taxed at her basic rate with an associated allowance of £6475. Is there any tax implications on me (40% tax bracket already) as the mortgage on the flat is in joint names. I would try and reflect this arrangement as a seperate venture for my wife as opposed to my PAYE income.

Anonymous - Friday, August 20th, 2010

If you don’t live in the uk and have property in the uk and rent them do you require to pay a tax?

Also , if you have property but family live in them and they are not paying rent then I dont think you will have to pay anything as no profit is being made.

RS - Thursday, August 26th, 2010

We are renting out our home for 10 days next july for the uk golf open for K8, I am a standard rate taxpayer. Is this taxable and where do we enter it on the self assesment.

TaxFix - Friday, August 27th, 2010

RS: Any profit from renting out your house is taxable. If you are earning a small amount of profit during the year from the rental, you may be able to change your tax code instead of completing a tax return. Contact your local tax office for advise on how to do this.

Arthur - Sunday, August 29th, 2010

My wife and I both hold discretionary Trusts
income to the trusts fron House rental,approx
£975 per month. We both have trust tax accounts
and make our yearly assesment returns ourselves. We are now being requested by our Letting Agent for £64 per year to cover what they say is required by inland revenue Taxes management Act section 19 which requires them also to inform of tax submission of landlords. I can understand this if we were Non Resident,but we are resident.
This extra amount plus a lot of extras puts a
terrible stain on any worth while profit which is for our grand children. Please inform if we
can request our agent to cancelled this charge
for we take responsibility of our returns.

craig - Sunday, August 29th, 2010

taxable income (profit)on my rented out house is less than £2500 per year so my tax code can be adjusted to collect tax throught my everyday employment but at what % is this tax going to be, also profit wont really be known till the end of the tax year because of expenses (mortgage, repairs,ins) so if i add those expenses to my self assesment (i do as self assesment as im in contruction) will tax taken before these expenses be refunded

cheers

PA - Monday, August 30th, 2010

My morgage is £500.00 a month and my tenant pays £ 500.00.
I pay the agency £50.00 a month so can I take it I do not owe the inland revenue anything but I still need to register is this correct?

TaxFix - Tuesday, August 31st, 2010

craig: The rate of tax will be at your marginal rate of tax. For example if you are a higher rate tax payer, you will pay the higher rate of tax which is currently 40%, if you are basic rate tax payer you will pay 20%. You will be able to deducted any allowable expenses against your income to determine your profit. The deadline for the 2009/2010 tax year is January 31st.

Darren Clarke - Wednesday, September 1st, 2010

I am renting a flat I bought 5 years to my In-Laws.
The rent they pay only just covers the Mortgage with about £5-10 to spare.
Do i need to inform the Tax office about this, as my tax code hasnt change for about 10 years.