Tax calculation

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Tax calculation

    I have property income of £27,668.45
    Finance cost of £5,772.80
    Insurances of £2241.72
    Repairs and Maintenance of £4088.72
    Legal management and other professional fees of £52.00
    Other allowable £400

    Can you tell me what you work my liability out at for this calc please. No other income ?

    #2
    Which tax year? Any other income -investments, pensions, salaries, eBay, car boots?

    How much donated charity?

    Any benefits?

    Finance cost - is that just interest?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      What exactly is the Finance Cost?
      What is the insurance -- that sounds phenomenally high in relation to rent and HMRC is unlikely to find plausible in any way if you are audited.

      As above, your tax payable depends on all sorts of other stuff

      Comment


        #4
        Here is my 2p worth of comment :

        Assuming you entered the info on Tax Return SA105 ( 2019) :

        Box [20] = 27,668 - rental income
        Allowable Expenses :
        Box [24[ = 2241 - insurance
        Box [25] = 4088 - repairs
        Box [26] = 2886 - 50% finance costs
        Box [27] = 52 - legal cost
        Box [29] = 0400 - others

        Box [38] = 18,001 ( profit )
        Box [44] = 2,886 - 50% finance costs

        Personal allowance = 11,850 .
        Taxable income = 18001- 11,850 = 6151

        liability to pay = 6151 at 20% + 2886 at 20% = 1230 + 577 = 1807.



        Comment

        Latest Activity

        Collapse

        • Rent aroom property relief.
          by calista
          Hi Qick Q i cant find the answer online..

          Can i claim rent a room relief on a rent of 300pounds a month at my first property where I live. 3600 a year.

          I rent a second property 1200 pcm, where I do not live and would not claim the rent a room relief- or rather i pay tax normally...
          31-03-2020, 12:10 PM
        • Reply to Rent aroom property relief.
          by calista
          Thanks for your reply, this is what i thought, but couldn't find anything on the government page to back it up.
          01-04-2020, 21:13 PM
        • Reply to S24 deduction of interest payment / Covid-19 Virus
          by jpkeates
          I don't think that many landlords will pay any more tax, it'll catch some, but I'd have thought for the majority of landlords it's tax neutral.
          A small number of landlords will pay slightly more tax isn't much of a headline, though.

          At the time as s24 has been introduced, the personal...
          01-04-2020, 13:13 PM
        • S24 deduction of interest payment / Covid-19 Virus
          by Flashback1966
          I am wondering if S24 tax changes are going to come and haunt landlords.

          Under the tax changes landlords can't deduct interest payments in full. Individual Landlords have been paying more tax, then is fair.

          You could end up with a situation where the tenant wont or can't...
          01-04-2020, 08:06 AM
        • Reply to Selling part share
          by Bill31
          Im sure the reservation relies on the person who made the gift.
          If we was to sell the property and take our 50/50 share of the sale price would that release the gift with reservation if we then went on to buy our own property
          01-04-2020, 12:27 PM
        • Selling part share
          by Bill31
          5 years ago i gifted part of my property to my son as joint tenants. We lived in the property together. So its possibly a grob.

          Now we want to go our separate ways. Could he buy my share out so he owns the whole house. And i use the money to buy elsewhere. Could this introduce a IHT or...
          31-03-2020, 13:41 PM
        • Reply to Selling part share
          by jpkeates
          The reservation will depend (as far as I can see) on who pays the running costs of the property.
          If the running costs are split in line with the ownership, it's one thing, if the property is run as though it was the mother's house with her continuing to pay all the bills is another.
          01-04-2020, 09:58 AM
        • Reply to Selling part share
          by AndrewDod
          Well if CGT was not payable on the first slice it won't be on the second.

          I don't see that you retained a benefit, but I can't find any case law to that effect. But if rent was payable it would have gone in both directions (you would have paid your son half the rent and he would have paid...
          31-03-2020, 18:19 PM
        • Reply to Selling part share
          by Bill31
          Interesting that it may not be a grob as we own it all together. But surely hmrc will view it as i retained a benefit.

          Its our only main property i dnt think any cgt will be due. I was asking will cgt be due if i make another gift or sell my share to get my name of deeds?
          I ask because...
          31-03-2020, 17:35 PM
        • Reply to Selling part share
          by AndrewDod
          Although they were BOTH living there and both owned it -- so the share gifted is probably not a GROB. It would be if only the OP was living there (owning only a portion) and not paying rent.

          It depends on the proportion - if the OP owned 1% and paid no rent - I think it would be in GROB...
          31-03-2020, 17:09 PM
        Working...
        X