Tax Credits Renewal

[spud1962]

I'm not clear about the rental income I have to declare on
my Tax Credit's renewal form.

I have just completed my first full year as a landlord
in the last tax year (2009/10)

Is the declared figure the gross rental income received,
or can i make deductions for expenses like estate agent
fees, EPC fee, 10% wear & tear allowance for furnished propery etc ?

[Gordon999]

Are you using the personal assessment form SA100 ?

It should refer to another form SA105 which is the one for declaring rental income from property. You can download the form SA105 from the hmrc website.

[spud1962]

Thanks for the info!:)

Now, just for clarity, which box number do i now "declare" as income on my Tax Credits renewal ?

[Gordon999]

I think I may be misunderstanding your question and your difficulty.

I don't know what you mean by "tax credit renewal form" ? This does not seem to be the correct form for declaring personal annual income. If your form does not have any box asking you to enter your income, then you should be looking at form SA100 ( guide notes are in SA150 ).

Are you using form SA100 ( return for personal income ) and form SA105 ( return for rental income from property ) ?

You can telephone your local tax office to ask your question or else pay an accountant to do the first return for you.

[islandgirl]

on your tax credits form you detail income from property as "other income" - it is not shown with "earned income" - You get the info from your personal tax return which I think Gordon is describing above.

[Always Problems]

As far as I am aware you enter the "Nett" figure after expenses. And that would mean Estate Agents fees, letting agents fees, lease set up fees, insurance if you pay it and dont charge the tenant for it. You can also claim 40p per mile every time you drive to or from the property, to or from your Estate or Letting agent. And because the Internet is now an essential part of being a landlord, (if only to read Landlord Zone) I now claim HALF of my yearly broadband costs, post,phone,etc are all allowable expenses.

[Telometer]

Always problems, OP is asking about benefits, not income tax.

[islandgirl]

You can estimate income and then give actual later - by 31st Jan following the end of the tax year

[hackneyhouse]

Hello,

I currently receive approx £8000 a year from lodgers and I've used the rent a room scheme for tax returns. My accountant does the forms.

I'm now having more lodgers in the house and I am considering the residential lettings scheme which allows me to offset mortgage interest.

However my net rental income will then work out quite a bit more than it used to, from £4000 a year to £11000 a year. I'm worried it'll just cancel out any tax credit payments therefore making it a useless idea to have more lodgers in my home.

How is rental income treated for tax credit? I'm yet to look at all my tax credit allowances, to see exactly.

Thanks!

[islandgirl]

as "other income" - it is added to whatever else you earn to give overall earnings BEFORE tax - it used to be that if the total was under about £52K you got something in tax credits - this is going down - I think I have read to 40K or less.
Just because it is rental income it is not treated "differently" and is just part of earnings.