Category: Landlords

October 2021 Autumn Budget headlines

NI & Dividend tax increase 1.25% National Insurance will increase from 6th April 2022 by 1.25%. This means that if you are an employee or a sole trader earning £30,000 a year, you will have to pay an extra £255 in tax. If you are the employer, then you’d have to pay an extra £255…

How to split property income tax efficiently

Quite often we come across landlord clients who are married and their spouse may earn significantly more or significantly less than themselves and would benefit from tax advice on the splitting of their property rental income to optimise their income tax. If this is you, then read on… Property income by default for a married…

Self Assessment Tax Return How-To Guide by LeeP Accountants Peterborough

Get your records in order Record-keeping is a vital for every self-employed person. You have a range of legal obligations when it comes to record-keeping – but entirely apart from this, the Self Assessment process will be significantly easier if you have the relevant documents easily to hand, and organised in an effective way. The…

Tips On Managing The Interest Rate Increase

A recent survey conducted by the MAS revealed that 18% of all home owners with mortgages didn’t realise that an increase in the bank of England interest rate might mean an increase in their mortgage repayments. With the recent 0.25% increase in the Bank of England (BoE) Interest rate coupled with further increases expected, what…

Want To Earn Up To £1,000 Tax Free? New Government Allowance Issued

From April 2017 there were 2 new annual tax allowances for individuals of £1,000 each, one for trading and one for property income. The trading allowance will also apply to certain miscellaneous income from providing assets or services. Where the allowances cover all of an individual’s relevant income (before expenses) then they will no longer…

Airbnb Income – How Will It Impact Me?

In general, money you earn from hosting is income and will be subject to tax. However depending on the amount you earn from hosting, it may or may not need to be declared to HM Revenue & Customs. So what’s the current situation? If you’re renting out your entire or even just a room of…

I Only Earn A Small Amount Of Rental Income (Inc. Airbnb Income)- Do I Have To Declare It?

I have been asked this question many times and the answer is invariably the same – “As a UK resident with any rental income you most certainly do need to declare your rental income”. There is no such thing as a minimal level which HMRC would not be interested in. Whether you have to pay…

Earn £7,500 tax free – Rent a room Relief

If you have a spare room in your home (applies to tenants also) and you don’t mind living with someone who is not family (of course, you can vet them first!) then you could be earning up to £7,500 completely tax free. The government Rent a Room Scheme lets you earn up to a threshold of £7,500…