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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4357
Experience:  FCCA FCMA CGMA ACIS
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I have a question regarding my property income. I live in

Customer Question

Hi There,I have a question regarding my property income.I live in the flat and also rent out two rooms to friends for approximately 15k per annum so this excludes me from the Rent-a-room scheme. However I pay all bills as well as a service charge so my expenses are pretty high.I have 3 specific questions in relation to calculating my taxable property income.:
1) Does the service charge count as an allowable expense (this is 8k per annum and significantly brings down income)?
2) How do I calculate the taxable profit? Can i simply take off all expenses from property income or do I need to apportion expesnes?
3) Evidence for income and expenses to HMRC. What is sufficient for HMRC. Bank statements? As the guys I let to are friends there is not always a structured income coming from them. Also not sure what to do about ad hoc things like the cleaner/cleaning products which I often pay in cash.Thanks
Submitted: 19 days ago.
Category: Tax
Customer: replied 19 days ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer: replied 19 days ago.
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Customer: replied 19 days ago.
Hi, dont worry about calling. Responding via email should suffice. Thanks!
Expert:  bigduckontax replied 19 days ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

1) Yes.

2) Yes, no need to apportion.

3) There is no requirement to submit supporting evidence to HMRC these days, just declare the income on your annual self assessment tax return using a Form SA105. Detained supporting data which you should retain might be needed in the unlikely evert of an HMRC investigation.

I do hope that you have found my reply of assistance.