Jobs & Education1 min ago
Tax Re Rental Property
1 Answers
I rent out a small flat through a letting agency who charge me a monthly fee. For ease I'll use the sums £500 and £400. (£100 fee)
At present when I fill in my tax return I put down £400 as earnings (ie no costs)
Would it benefit me to put down £500 as earnings and £100 as costs (against tax) or doesn't it matter whichever way I do it?
At present when I fill in my tax return I put down £400 as earnings (ie no costs)
Would it benefit me to put down £500 as earnings and £100 as costs (against tax) or doesn't it matter whichever way I do it?
Answers
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No best answer has yet been selected by zingo1327. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.I don't think it would benefit you financially, but I would put it in as £500 earnings and £100 costs.
You really should put down everything as it is, irrespective of whether it makes a difference to your tax or not.
The reason I say this is I had my tax return queried one year and one of the things I was pulled on was not including interest earned on my savings (this was back in the day when interest on your savings was taxed at source).
I wasn't actually penalised for it, as they were querying other things, but I was given a slap on the wrist and told to make sure I included everything on my tax return (even though it made no difference whatsoever to my tax).
You really should put down everything as it is, irrespective of whether it makes a difference to your tax or not.
The reason I say this is I had my tax return queried one year and one of the things I was pulled on was not including interest earned on my savings (this was back in the day when interest on your savings was taxed at source).
I wasn't actually penalised for it, as they were querying other things, but I was given a slap on the wrist and told to make sure I included everything on my tax return (even though it made no difference whatsoever to my tax).