I rent out a property. Do I have to pay 20% of it to the filthy fucking government?

Of course you do. Whether you should be posting that on here is another question.

We never paid it seeing as the rent we received didn't even cover the mortgage

Thanks gonzo, I'll go with that answer.

Your tax liability depends in a number of things. Your income from the house and other sources; how you finance it; whether it is shared ownership; depends on whether you have made repairs to it so lots to consider. Or go with Gonzo's advice :lol:

Edited August 29, 20178 yr by Salford Trotter

Install a gerbil in a cage under the stairs or somewhere else out of the way and name them as the householder/primary resident. You can then earn £7500 p.a. tax free and non-declarable under the government's 'rent a room' scheme.

Don't forget to feed it, and keep its water bottle topped up

A buy to let is likely seen as any other investment / income

 

If you make a profit on it that fiscal year then you need to pay tax on the profit

 

If you don't make a profit then you have nothing to pay

 

If you make a small profit then I'm sure you can somehow put that to one side to off set against future costs / repairs so you don't pay tax, an accountant could help here

 

Chances are your unlikely to get pulled for a HMRC audit though so it's a moral issue as much as anything

 

I'm not sure if capital gains tax kicks in somewhere along the line so best to be the right side of it now rather than facing a hefty bill at a later date

 

Get an accountant

Edited August 29, 20178 yr by birch-chorley

I think it's if you profit by over 6k per year

I rent out a property. Do I have to pay 20% of it to the filthy fucking government?

get a few people in the building trade to do you Invoices for maintance on it

 

that way you don't pay Mad Max

I rent out a property. Do I have to pay 20% of it to the filthy fucking government?

It depends on what other income you have, you could pay 40% tax if you're a higher rate tax payer. The goverment aren't allowing 100% tax relief on mortgages soon, you'll only be able to claim 20% of the tax relief on the mortgage, which will incease most landlords income, which won't be a good thing if you have a few rental properties that are all mortgaged.

 

It would be best to have a rental property in joint names if possible, so that each person gets their capital gains allowance, which would lower the potential tax bill if you made a profit on selling the rental property in the future.

 

Also any losses for the rental property can be carried forward to the next tax year, you can't offset any losses against your paye or self employment income though.

Edited August 29, 20178 yr by Blondi

I rent out a property. Do I have to pay 20% of it to the filthy fucking government?

Fill in a self-assessment tax return and HMRC will answer that for you.

Edited August 29, 20178 yr by Jol_BWFC

Fill in a self-assessment tax return and HMRC will answer that for you.

Have you ever considered what the term ' self-assessment' actually means?

get a few people in the building trade to do you Invoices for maintance on it

 

that way you don't pay Mad Max

And hope the builder doesn't get investigated.

I've spent a few grand renovating it before that. Can I claim anything from that outlay?

Have you ever considered what the term ' self-assessment' actually means?

I'm not sure I understand the question (the point being made).

Biggish Dave is your man for thsi

turn youre front room into a prayer room and you should be ok

Edited August 30, 20178 yr by fester58

OK, here goes:-

 

You need to register for S.A if you haven't already done so. your S.A return will consist of employment section and land and property. Other areas might need adding depending on personal circumstances and I am assuming you are employed therefore no need for an SA return before now?

 

Your land and property section will have income of gross rent received.

 

You can offset mortgage interest only (not the whole cost of the mortgage unless its an interest only mortgage)

Legal & Prof fees if there's a letting agent letting it out

ground rent

repairs

insurance

basically, any cost which can be attributed to the cost of letting out the property.

 

If there is any profit, you pay tax on it, if it's a loss you carry it forward. Don't even think about CGT yet - that's for another day if you decide to sell and there might not even be any depending on whether its been you principal private residence, when you sell it etc.

 

If you need any further info, drop me a pm - be glad to help out

There were changes introduced in April 2017 this will be phased in over the next four years by 2020 you will only be able to basic rate tax relief on mortgage interest, there are also changes in the amounts you can deduct as notional wear and tear.

 

The days of not declaring rental properties are at an end as the revenue can now check ownership and who occupies the property, its not worth the hassle of not declaring as if you get caught the penalties are more than any gain you will have made. 

What's the rules re SA for a man and wife renting out?

get a few people in the building trade to do you Invoices for maintance on it

 

that way you don't pay Mad Max

Yep, yer alright pal, the rest of us fund the running of the country and you piss what you should be paying in MADMAX up a wall... Just don't fucking complain when the NHS isn't there.

....I know a few building companies / electrical firms that all run at a massive loss but all own humpteen properties

Yep, yer alright pal, the rest of us fund the running of the country and you piss what you should be paying in MADMAX up a wall... Just don't fucking complain when the NHS isn't there.

Eg-fucking-zactly.

 

Plenty on this board moaning about broken Britain - everything from migrants taking British jobs and using "our" services, to the NHS being in crisis, evil tax-dodging corporations and wanker bankers who should have their bonuses taken away.

 

They are all legitimate points for debate, but when it comes to paying the taxes they owe to help fund this nation, it's a different story. Tax evasion is fine, it seems.

Morizio - it gets split in half unless you are legally tenants in common with different ownership to 50/50

turn youre front room into a prayer room and you should be ok

 

yes because thats not complete utter bollocks generate is it