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TonyTax
TonyTax, Tax Consultant
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I earn before tax 775 before tax as paye And have to declare

Resolved Question:

I earn before tax 775 before tax as paye
And have to declare weekly £180 on tax return for fostering
I am considering before April 1 st this year buying a buy to let which will bring in 950a month rent before tax how much tax will I owe on the property is it worth my while as its my first buy to let also I'm thinking of dropping some hours if I'm paying high tax income before paye could be £545 paye and same for declare tax return is £180 plus £950 buy to let
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Is the £775 figure weekly or monthly earnings? Do you not use the special arrangements for foster care fees tax? What does the figure of £545 represent? Will you take a mortgage to fund the buy to let purchase?
Customer: replied 1 year ago.
775 is before tax weekly also I declare 180 week fostering as this is what I have to declare after hmrc allowances I'm thinking of dropping some hours on my paye can possibly earn 545 I am getting a mortgage to fund the deposit for the mortgage so it's a buy to let for 20000 and a remortgage for 90000
Expert:  TonyTax replied 1 year ago.
Thanks. Leave this with me while I draft my answer.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank you as I'm not sure buy to let is worth my while if
Expert:  TonyTax replied 1 year ago.
Do you want me to post an answer or just call you?
Expert:  TonyTax replied 1 year ago.
Here are some helpful links: As of now and for 2016/17, you will get a full deduction for your mortgage interest against your rental income From 2017/18, higher rate tax relief will gradually be withdrawn. See the third link below. You only pay tax on rental profits (income less deductible expenses) but the planned changes to mortgage tax relief for rental properties will lead to you paying some tax depending on the other expenses you incur in the tax year. https://www.gov.uk/government/publications/self-assessment-uk-property-sa105 http://www.which.co.uk/money/tax/guides/tax-on-property-and-rental-income/allowable-expenses-and-allowances/ http://www.rossmartin.co.uk/land-a-property/1948-restricting-mortgage-interest-relief-freeview I hope this helps but let me know if you have any further questions.

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