Thanks ChocolateMama. I know about the tax relief on the mortgage interest, but didn't know about wear and tear, so that's very useful. I wasn't thinking of charging for my time, but when you get Tax Credits, there are different levels/thresholds depending on whether you work 18+, 25+ or 30+ hours per week, and I wondered whether I could 'count' the time it is taking me currently to set everything up...
I don't have an accountant - the rental income will only be about £1k before tax, so paying someone £200+ to do my accounts seems profligate.
Hi, you cannot charge for your own time as a landlord unfortunately, so that is out. But there are lots of ways that you can legally reduce your tax bill. If you google this subject you will find loads of advice. If you have an accountant, he/she will also advise. If the property is furnished for example, you can claim 10% of your rental income against wear and tear. You also get relief on your mortgage interest payments. Good luck!
I'm about to become a landlord (I have taken out a LtB mortgage on the house I currently live in, to be able to move home). I am likely to make some profit from the rent - not much, but perhaps £1000/year. I get tax credits, and that amount of extra income will reduce my TCs but not stop me qualifying, afaik.
I already do a self-assessment tax return. Other than declaring the rental income, is there anything else I should do? Being a landlord will take a bit of time.. should I count and declare the hours too?