Rental Income and PAYE

[BillHicksRIP]

Simon, is the £4,000 you are referring to the rent a room allowance of £4,250 per annum? If so you can't deduct expenses from the rent for this and it has to be generated from renting a room in your personal residence rather than a typical rental property. If it's a typical rental property there isn't a 'standard allowance' you can earn before paying tax, other than where it is covered by the normal personal allowance.

Hope this helps

Martin
Contratax Ltd

If I rent my old house out, can I deduct expenses for interest, maintenance, insurance etc. from the income I earn from that?

[ContrataxLtd]

If I rent my old house out, can I deduct expenses for interest, maintenance, insurance etc. from the income I earn from that?

Hi BillHicksRIP

I assume the old house is no longer your main residence and as such is just a normal property let. In this case you can deduct the usual expenses from the rent received - mortgage interest, maintenance, insurance, 10% wear & tear allowance if fully furnished, repairs etc.

Just as a side point too as it may be relevant to the thread, you don't have to use the rent a room allowance when renting out a room in your main residence, you can elect to treat it like a normal rental as in some cases this can be more tax efficient.

Martin
Contratax Ltd

[BillHicksRIP]

Thanks very much Martin.