Calculating tax owed after allowable expenses

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    Calculating tax owed after allowable expenses

    My total rental income only £4300 but there are some £2600 allowable expenses due to void period and agents fees.
    How is this calculated to reach the final figure? Is 20% or something allowed of it?

    You deduct the allowable expenses from the income (ignoring any interest paid on a BTL mortgage - and any other fees relating to a mortgage).
    You add that to any taxable income you have and calculate the tax due based on your total taxable income.
    The you deduct any tax paid through PAYE from your P60 and then deduct 20% of the mortgage costs.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


      HMRC does it for online as you submit your return.
      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...


        I agree with theartfullodger . You declare the details on your SATR online tax return :

        Rental income = 4300
        Rental expenses = 2600
        Rental profit = 1700
        Loan Interest = ?


          Great That is really useful


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