Renting out a property and taxes you will have to pay #AskAMS

When you will have to start paying tax, and where to find out about ‘allowable’ expenses.

If you have net rental income on which you'll have tax to pay, (rent minus expenses) then you must register for a Self- Assessment tax return and keep a record of your rental income and ‘allowable’ expenses (you can find out what they are here www.gov.uk/renting-out-a-property/paying-tax).

If the rent is lower than the personal allowance of £11,850 -2018/19, (and you have no other income), you will not pay income tax. But if the gross rental income exceeds £10,000, or the net rental income exceeds £2,500, then HMRC will still require a tax return. 

If you make a loss on the rental, it is still a good idea to complete a Tax Return so that you can record the loss, carry it forward, and maybe reduce your tax in a later year.