Rental Expenses

[desouzi04]

Hi,

Please can you help me. I am in the process of calculating all my expenses for the year. Please can you advise if I have included all the necessary charges below and if there are any additional to be added. Also should I be taxed 40% on the final figure below or are there any exceptions ?

Thanks Ian

RENT 5,200.00
MGMT LETTING FEES -768.00
FLAT SERVICE CHGS -600.00
MORT INT -680.00
ACCOUNT -400.00
MORT AGMT FEE -75.00
INSURANCE -48.00
CLEANING -20.00
MOTOR -20.00
PHONE -5.00
TOTAL RENTAL INCOME 2,584.00
WEAR TEAR @ 10% -520.00
PROFIT BEFORE TAX 2,064.00
TAX 40% 825.60
PROFIT AFTER TAX 1,238.40

[Worldlife]

A good start would be to visit HM Revenue and Customs (http://www.hmrc.gov.uk/sa/forms/net-04-05.htm)

Download from the Land & Property Section:-


Land and Property Pages - SA 105
Notes on Land and Property SA105


Please note the form has not yet been updated for the tax year ending April 2006 but it has remained the same for many years. The notes are very useful.

[desouzi04]

Thanks, although what I can't understand is the "wear and tear allowance" part of taxable income. i.e. would I expect to get taxed 40% on this as well ?