Hello, Can someone help me out please?

Question

I would like to know whether a landlord of a property who rents out rooms in his property has to pay Tax on the monthly payments he receives from his tenants.

Many thanks

Answer 1

He has to pay income tax on any profit he gets from the rent, he would be allowed to deduct any legitimate expenses and it would just be the profit that is taxed. His income has to be declared to HMRC

If he rents out a room in his own home he is allowed to earn up to a set limit prior to paying tax on the rest

Answer 2

Yes

Answer 3

Yes he does. He needs to list the sums received on his annual tax return, and to list his outgoings as deductions. As far a the tax man is concerned it is a small business.

Answer 4

It depends. Generally all income is taxable unless you let a room in your house to a lodger and the income does not exceed about £4,200 your local tax office will tell you the exact figures.

If the income is any more than this it is taxable though there certain costs which can be deducted such as letting fees etc.

Answer 5

In the U.S., at least, rental income is taxable. It can be offset by some of the expenses of maintaining the property.

I don't know what the rules are in the UK, sorry.

Answer 6

1. rent is a biz.  Oener kan subtrakt wot him spend.

Profit is taxed as inkum.