Tax on renting out my own home ?

Question

does anyone know how much i can earn in 1 year by renting my house out without paying tax ?is there a limit on what i can get from my tennants before i have to pay tax? or do i pay tax regardless of how much i get ?

Answer 1

The money you collect from renting out your home is added to the money you earn at your job. For income tax purposes the rental income is put on a Sch E and is decreased by expenses you incur. A tax professional can help you determine what legitmate expenses you can use to reduce the  rental income.

Answer 2

I take it you will not be living in your house yourself? If you were you can get over £4000 tax-free under the rent-a room provisions.

If you are letting the whole house, and will be living elsewhere, you will be taxable on the rent. With rent, as with any other income, you can get £5435 without paying tax if you have no other income. That personal allowance goes up to £6035 in September, when it becomes retrospective back to 6th April.

If you receive rental income, you have to register with HMRC, and complete an annual Tax Return. There are expenses you can claim against rental income, look at www.hmrc/income from property.