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Tax people : rent to me is 9 grand, I paid 4 grand possibly over the April boundary... Eg 2 I've side 2 the

14 replies

40thmonarch · 08/11/2023 12:15

Other..

How much tax would I pay pleased say its 2 grand for legal costs

OP posts:
NeedingCoffee · 08/11/2023 12:27

I’m sorry but that’s a completely unanswerable question without a stack more information.

LakeTiticaca · 08/11/2023 13:00

Eh?

eurochick · 08/11/2023 13:11

I recognise the words individually...

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Moredarkchocolateplease · 08/11/2023 13:31

You pay per tax year. So anything until the 5th is one tax year, any income from the 6th is the following tax year.

Moredarkchocolateplease · 08/11/2023 13:31

But I'm only guessing what your question is! Perhaps re read and re write it!

FallingAutumnLeaf · 08/11/2023 13:36

Look at what income was recieved in each tax year. Actual dates. Actual payments.
Total tax due will depend on total earnings in each tax year.

40thmonarch · 08/11/2023 16:17

I earn from rental income 9 grand pa.

Last year and this year I had a messy lease which total 4 grand but I've got a feeling it aas two grand last July and two grand after April 2023.
So say its 2 grand in legal fees, how much reduction would I get pleaae on my usual tax

OP posts:
TeenDivided · 08/11/2023 16:27

Presuming it doesn't bring you in under your personal threshold of ~£12,500 pa, and you aren't in the 40% tax band.

If £2000 in costs can be deducted from the income, so £2000 less income to pay tax on.
If paying 20% tax then that is £400 tax not due/saved.

Flickersy · 08/11/2023 17:30

40thmonarch · 08/11/2023 16:17

I earn from rental income 9 grand pa.

Last year and this year I had a messy lease which total 4 grand but I've got a feeling it aas two grand last July and two grand after April 2023.
So say its 2 grand in legal fees, how much reduction would I get pleaae on my usual tax

No-one can answer this properly without more information. I suggest you calculate your tax on your self-assessment form or ask a real life tax advisor for help.

BMW6 · 08/11/2023 18:04

I may be wrong as its been years since I retired from HMRC, but wouldn't lease costs be deductible from Capital Gains on disposal only, not as an expense of letting and deductible for Income Tax?

40thmonarch · 08/11/2023 21:47

@BMW6 i think that rings some bell.

Unfortunately it spiralled out of control and it went to another 2 grand... So called negotion.

Would that be exempt and help me get tax down

OP posts:
40thmonarch · 08/11/2023 21:49

@TeenDivided that's helpful thank you.

Unfortunately I think BMW is right and it's possibly not claimable ok wondering if the second stage is though.

OP posts:
Changingplace · 08/11/2023 21:51

This is why you should use a tax accountant to work this stuff out.

40thmonarch · 08/11/2023 21:52

@Changingplace

It's one anomaly on a very small rent?
I'm already over 4 grand down wasted on a lease.

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