Renting UK House (Advise Welcome)
Jan 6th 2012, 2:27 pm
#1
Just Joined
Thread Starter
Joined: Jan 2009
Location: Christ Church
Posts: 11
Renting UK House (Advise Welcome)
Hi One & All
Starting the new year with a bang and renting out my lovely house back in the U.K.
Can anyone offer any advise, on such things as paying the dreaded taxman.
Informing Mortgage lenders, will they cause a fuss?
Good/Bad experiences?
And any other bits of advise would be more than welcome please.
Mister Arsenal
Starting the new year with a bang and renting out my lovely house back in the U.K.
Can anyone offer any advise, on such things as paying the dreaded taxman.
Informing Mortgage lenders, will they cause a fuss?
Good/Bad experiences?
And any other bits of advise would be more than welcome please.
Mister Arsenal
Jan 7th 2012, 9:16 am
#2
Just Joined
Joined: Jan 2012
Location: West Yorkshire, UK
Posts: 17
Re: Renting UK House (Advise Welcome)
Hi Mister arsenal
My husband rents out his house in UK. Started about 4 years ago. His mortgage company was fine I think they just needed his signature, there were no problems with them. Though we are still in uk so not sure if that makes a difference. Buildings insurance were also fine, the premium went down! It's a good idea to get breakdown cover for your boiler, etc. we use British gas. They know the property is rented so the tenant can ring them direct if there are problems. Of course include any premium in your rent! In terms of tax, I think any income should be declared to inland revenue. This is done by submitting a tax return(special pages on the form for property income), after April 5th each year. It can be done online. Remember to keep receipts for any work, repairs etc on the house as these are expenses and you are only taxed on profit.
We have been really lucky with tenants, but we are still local. You may need someone to 'manage' things if you are not in uk, a letting agency will cost. Perhaps family or friends can help you out.
Good luck with it all.
My husband rents out his house in UK. Started about 4 years ago. His mortgage company was fine I think they just needed his signature, there were no problems with them. Though we are still in uk so not sure if that makes a difference. Buildings insurance were also fine, the premium went down! It's a good idea to get breakdown cover for your boiler, etc. we use British gas. They know the property is rented so the tenant can ring them direct if there are problems. Of course include any premium in your rent! In terms of tax, I think any income should be declared to inland revenue. This is done by submitting a tax return(special pages on the form for property income), after April 5th each year. It can be done online. Remember to keep receipts for any work, repairs etc on the house as these are expenses and you are only taxed on profit.
We have been really lucky with tenants, but we are still local. You may need someone to 'manage' things if you are not in uk, a letting agency will cost. Perhaps family or friends can help you out.
Good luck with it all.
Jan 9th 2012, 11:43 am
#3
Just Joined
Thread Starter
Joined: Jan 2009
Location: Christ Church
Posts: 11
Re: Renting UK House (Advise Welcome)
Hi Destiny4
Thank you so much for your post very informative, and gave me other things to consider but in a positive way.
Mister Arsenal
Thank you so much for your post very informative, and gave me other things to consider but in a positive way.
Mister Arsenal
Jan 9th 2012, 7:16 pm
#4
Democracy advocate
Joined: Mar 2006
Posts: 12,460
Re: Renting UK House (Advise Welcome)
P85 form (assume you did this when you left)
NRL1 form (otherwise tenants or agents have to deduct 20% and pay straight to UK taxman and you have to try and claim it back)
lettings insurance for building, you might also consider insurance for emergency works (boiler fail, electricity fail etc) and for legal fees if tenants don't pay and to cover rent if tenants don't pay.
Annual gas safety check
energy efficiency certificate
lettings agent to manage the property and tenants - approx 10-15% of rental income.
Annual wear & tear allowance of 10%
TAX UK - annual self-assessment form, if you have a "profit" (after all costs/allowances above plus mortgage interest (only the interest part)) that is less than your personal allowance (GBP7.5K pa) then no tax to pay.
TAX Caribbean - down to dual tax agreement, suspect you will add the "profit" onto your income and be taxed at the marginal rate. If you did pay any tax in the UK it is likely you can deduct this before calculating your caribbean tax.
Suggest you knock up a document showing tenants where the various stopcocks and fuses etc are. try to realize its no longer your home but your business.
Good luck
NRL1 form (otherwise tenants or agents have to deduct 20% and pay straight to UK taxman and you have to try and claim it back)
lettings insurance for building, you might also consider insurance for emergency works (boiler fail, electricity fail etc) and for legal fees if tenants don't pay and to cover rent if tenants don't pay.
Annual gas safety check
energy efficiency certificate
lettings agent to manage the property and tenants - approx 10-15% of rental income.
Annual wear & tear allowance of 10%
TAX UK - annual self-assessment form, if you have a "profit" (after all costs/allowances above plus mortgage interest (only the interest part)) that is less than your personal allowance (GBP7.5K pa) then no tax to pay.
TAX Caribbean - down to dual tax agreement, suspect you will add the "profit" onto your income and be taxed at the marginal rate. If you did pay any tax in the UK it is likely you can deduct this before calculating your caribbean tax.
Suggest you knock up a document showing tenants where the various stopcocks and fuses etc are. try to realize its no longer your home but your business.
Good luck
