B2L taxman wants to know if I will make more than £2.5k

(5 Posts)
Chippychop Sat 03-Mar-12 09:11:52

Just been made redundantsad so I guess it will have to be through self assessment

FrillyMilly Fri 02-Mar-12 11:31:34

Just to add to work out worst case of what you pay tax on so assume house is rented for 12 months. Total annual rent less agency fees, mortgage interest and insurance. That should give you a rough idea.

FrillyMilly Fri 02-Mar-12 11:07:03

If you already pay PAYE through employment and your profit is less than £2.5k they can adjust your tax code to collect the tax due from your rental property. You get sent a form each year to declare your profits.

If you have a profit of more than £2.5k you will need to fill out a self assessment tax return.

CogitoErgoSometimes Fri 02-Mar-12 10:58:49

Have you registered as self-employed? Do you have other income streams? The thresholds are not as low as £2.5k for BTL alone.

Chippychop Wed 29-Feb-12 11:47:46

I said I dont know yet....because I dont know what expenses there will be..he said I need to let him know. why is this and what should I say

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