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.

About Phoenix

Accountant | Tax Specialist | Quickbooks ProAdvisor Online

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Phoenix Debola is licensed and regulated by AAT to provide services in accordance with licence number 1000701 details of which are displayed at the address shown. AAT is recognised by HM Treasury to supervise compliance with the Money Laundering Regulations and Phoenix Debola Cloud Accountancy Practice is supervised by AAT in this respect.

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