£1172 tax on 8,000 income does this sound correct?

(47 Posts)
Pandemicpanic Sat 09-Jan-21 12:41:24

I have income from the rent of 8,000 per annum and I earn about 930 a month from work...After everything is taken out.

I set the work and rent to be paid separately... Does this sound correct?..

OP’s posts: |
QforCucumber Sat 09-Jan-21 12:47:59

What's your pre tax annual income from work?

Pandemicpanic Sat 09-Jan-21 12:51:34

11803

OP’s posts: |
TiddyTid Sat 09-Jan-21 12:53:00

Quick calc in my head says that's probably correct

DragonMamma Sat 09-Jan-21 12:53:02

Well that would be right. Your job uses up pretty much all of your personal allowance (£12.5k usually). Therefore you’ll be paying 20% tax on the rental income you receive (bar a bit of PA you have left)

Honeybobbin Sat 09-Jan-21 12:54:38

Message withdrawn at poster's request.

DragonMamma Sat 09-Jan-21 12:55:48

£11,803 + £8,000 = £19,803

£19,803 - £12,500 = £7,303, which is the amount you’ll pay tax on.

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Pandemicpanic Sat 09-Jan-21 12:56:18

Ok thanks.

Dh does it for me and when he did it for the 1st time last year, I paid less than that and he told me this year would be even less because I am earning less.
So my expectation was it would be lower than last year which was much lower than that!

Now I've got to find 500.....

Thank you.

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Clymene Sat 09-Jan-21 12:56:50

That isn't the tax on £8k. It's the tax on £8k plus your income. It sounds right to me

Pandemicpanic Sat 09-Jan-21 12:57:20

I did set rent and salary separately so ni and any tax would come out of salary at source.

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raspberryrippleicecream Sat 09-Jan-21 12:59:06

Have you made sure you've offset any expenses you are allowed too?

CodenameVillanelle Sat 09-Jan-21 12:59:22

Pandemicpanic

I did set rent and salary separately so ni and any tax would come out of salary at source.

The tax office views your income as a total, not separate amounts. You only get one tax free allowance, not one per income source.

Pipandmum Sat 09-Jan-21 12:59:40

No I believe it is unearned income and earned, but they are both considered income so added together and taxed after your personal allowance is taken out (and other deductions). You do not pay NIC on your unearned income however, so only calculate that on earned income.
It may benefit you to ask an accountant to walk you through your first tax return, as there are certain deductions depending on whether it is furnished or not, managed etc, and for subsequent years you can do it yourself.

SeasonFinale Sat 09-Jan-21 13:00:11

Have you taken off any deductions you are allowed to from.the rent such as any allowable expenses relating to the property? If not you need to do that first

PleasantVille Sat 09-Jan-21 13:00:19

Pandemicpanic

I did set rent and salary separately so ni and any tax would come out of salary at source.

What do you mean by set them separately? There isn't a choice is there, you can only have wages paid under PAYE, don't you always have to do a tax return for rent, I know my Dbro does

Pandemicpanic Sat 09-Jan-21 13:06:57

Pleasant, I don't know the correct terms but there was an option to pay tax once.

On salary and rent.

I asked on here actually about the pros and cons and I was advised to keep them separate because if I lost a tenant, by the time tax people processed that I could still be paying for non existing rent.

So I kept them separated.

My work takes care of wage and I do a tax return.

OP’s posts: |
LIZS Sat 09-Jan-21 13:10:03

You pay tax on rental income retrospectively. So the amount due now is for year to April 2019 and takes into account your earned income and paye over same period.

Pandemicpanic Sat 09-Jan-21 13:11:28

5871 dh said of taxable income.

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LIZS Sat 09-Jan-21 13:13:54

Pandemicpanic

5871 dh said of taxable income.


?

Pandemicpanic Sat 09-Jan-21 13:16:15

After allowances and rent that's what's left to be taxed on.

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LIZS Sat 09-Jan-21 13:17:25

The online system calculates it for you. It will be 20% of your total income less personal allowance, less whatever you have paid by paye.

Pandemicpanic Sat 09-Jan-21 13:18:28

That's what dh said was left

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AlexisCarringtonColbyDexter Sat 09-Jan-21 13:19:46

I also do self assessment and that sounds about right to me

ClashCityRocker Sat 09-Jan-21 13:22:02

Yep... Well, i make it £1,174 so you've overpaid £2 through PAYE due to rounding or something of that ilk.

Pandemicpanic Sat 09-Jan-21 13:22:48

He's just said it's actually 1785.

OP’s posts: |

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