Accounting, Taxation

In case you didn’t know…

If you rent any part of your main home out for residential purposes, there’s a tax free threshold of £7500 per year, effective from the 2016/2017 tax year. This means the first £7500 of the gross rent is tax free. Note that you cannot deduct expenses if you are taking advantage of this tax free option.

If, on the other hand, you have a lot of expenses or likely to make a loss, you may prefer to forego the above gross rent tax free option and adopt the traditional way of working out your tax, if any, on profits. This means you submit tax returns based on the profit (or loss).

Get in touch if you need help working out the better option for your circumstances.

Advertisements

About Phoenix

Accountant and Home Educator

Discussion

No comments yet.

Get in touch

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow PHOENIX DEBOLA ACCOUNTANCY SERVICES on WordPress.com

Enter your email address to receive notifications of new posts by email.

Join 3,133 other followers

POST CATEGORIES

0044 780 370 4496
0044 168 981 8119
%d bloggers like this: