tax credits and other income- help!

[abigail12]

I'm trying to fill out my tax credits application and its asked for any other income we have out with our work wages. we rent out our old flat but make very little or no profit because the income pays for the mortgage on the property and factor fees etc. do i declare only profit made or income made before we pay the old mortgage and fees etc? please help.

I would say the important word here is income therefore you have to declare the gross amount you receive in rent before any deductions are made. As it should match what you put on the property pages of your tax return.

yes you do need to declare it all. I can't remember if it is profit or income but i think it is income for tax credits , profit for your tax calculation.

I disagree, I'm fairly sure it's profit as for income tax purposes. Generally tax credits are interested in taxable income. Probably best to phone the helpline and check.

On your tax return you should have income (gross profit), interest payments for mortgage(not capital), allowances for wear and tear etc giving a net profit that you are then taxed on. Your total income for the property is taxable, but then you are allowed certain costs to 'put against' this tax.

Just done a quick google and it seems i might have filled my forms in wrongly and it is indeed profit from rentals that counts as income......hmm i think i need to give them a call to clarify too! Very unclear i have to say!