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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15976
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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there, I have not been able to sell my flat so I'm looking

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Hi there,
I have not been able to sell my flat so I'm looking to rent it out. I'm renting a flat in surrey (single mum with one child) because it is near my parents who I need for child care. The flat is in London.
I earn £24,000 PAYE and will get £1,100 a month in rent from the flat. My mortgage on the flat is £365 a month, I will have to pay £65 a month for a management company and £1500 in estate agent fees.
As I'm at a tax band of 20% do I need to pay tax on the remaining rental income (£545)?
Many thanks,

If you have a surplus of rental income over deductible expenses in a tax year and no excess of expenses over rental income brought forward from an earlier year, then you will need to pay income tax on that surplus. Take a look here for information on the types of expenses you can claim.

You will need to register for self-assessment once you have let the flat, certainly no later then six months after the end of the tax year in which you let it. You can do that on a paper SA1 (here) or online here.

You might also be interested in the information in HS283 here.

I hope this helps but let me know if you have any further questions.
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