If you’ve heard older landlords mention the “wear and tear allowance,” you might wonder why you can’t find it on your tax return. That’s because it was abolished in April 2016. Here’s what replaced it — and how the new system actually works in your favour if you’re replacing items in your rental property. What […]
Taking in a lodger is one of the most tax-efficient ways to earn extra income in the UK. Under the rent-a-room scheme, you can receive up to £7,500 a year completely tax-free — no receipts needed, no complex calculations. Here’s how it works. What Is Rent-a-Room Relief? Rent-a-room relief is a government scheme that lets […]
If your rental income is relatively small, you might not need to track expenses at all. The property income allowance lets you earn up to £1,000 from property completely tax-free — no receipts, no record-keeping, no fuss. But it’s not always the best choice. Here’s how to decide. What Is the Property Income Allowance? The […]
If you’re a landlord with a mortgage, Section 24 is one of the most important tax rules to understand. Introduced in 2017 and fully in effect since April 2020, it changed how landlords claim tax relief on mortgage interest — and for many, it meant a significantly higher tax bill. What Is Section 24? Section […]
Moving abroad doesn’t mean you stop paying UK tax on your rental property. If you own a UK rental while living overseas, you’re classed as a non-resident landlord — and there are specific rules about how your tax gets collected. Here’s what you need to know. What Is a Non-Resident Landlord? You’re a non-resident landlord […]
One of the most common misunderstandings new landlords have is thinking they’ll pay tax on every pound of rent they collect. You won’t. HMRC taxes your rental profit, not your rental income. Understanding the difference could save you hundreds — or thousands — each year. The Basic Difference Rental income is the total rent you […]
If you’re renting out a property, you need to pay tax on the income. But how exactly does it work, and when do you pay? Here’s a straightforward explanation of how landlords pay tax in the UK. It’s Income Tax, Not a Special “Landlord Tax” Rental income is taxed as part of your overall income. […]
