Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.
Of the £728 you pay for the mortgage payment, how much of this is attributable to the interest charges? AS the capital repayment element of the payment is NOT an allowable expense against the rental income - just the interest I am afraid.
So the rental income position will be £725 less interest of the mortgage, lettings fees, building insurance (along with any landlord insurance and repairs and maintenance whilst you have tenants in situ)
Then anything left over is added to you notmal income and if you are a 40% taxpayer then you ewill pay 40% tax on this
Let me know if I can assist further
You indicate you wish a phone call - I can send an additional services request for this - but it will involve a further fee - do you wish to proceed?
Yes thats correct - and ask your lender to provide you with a certificate of interest paid after each 5th April - as its easier then to extract the interest figure as whole!
If you have all that you need, then please do take the time to rate me for the level of service I have provided, or click accept