Adjusted Net Income Calculation & Rental Income

[ExpectMore]

Hi, I'm wondering if someone can help clarify the position with respect to accounting for rental income when calculating adjusted net income as the reference material I've found online is somewhat unclear.

The crux of my question is:
"Does adjusted net income include either a) the full rental income (i.e. total rent take) or b) the net rental income (i.e. full rental income minus costs such as mortgage interest etc)?" Please

I had assumed the later (as it makes more sense that way as it's the net income that you have access to) however the more I read into it I'm beginning to think it's the former.

Why I'm not certain is that HMRC refers to "some rental income" as being included within the calc.

Thanks a lot in advance for any help you can offer!

You can’t include mortgage interest as a cost anymore though you do get a 20% allowance on it. I always just get my accountant to work it out as when it comes to HMRC it’s best to be accurate. They audited my property accounts once which was 6 months of joy and ridiculous questions!

@whirlyhead thanks a lot, much appreciated.

Totally agree, had a similar issue previously due to working overseas for a period of time and enjoyed 6 months + of stress just for them to assure themselves all was in order!