Self assessment confusion

Hi, I started renting out my old flat last year and did a self assessment in Oct but due to the date I started renting it out there wasn't much to pay on the self assessment. However this year I have a bill of just under 1k due end Jan after doing my self assessment this year, as well as a tax code adjustment stating I'll have underpaid by £465.00. I made a profit of £3800 (£4800 rent deducted £1000)per year on the property and have a salary of around £34k - does this seem right to everyone? The property is paid off but I have the associated factors/landlord costs and it doesnt seem worth renting it out for so little return

Hi,
 

Based on the figure given, you would expect to pay 20% tax on the profit made. there may be other things in your tax return that you have claimed/not claimed to increase the charge due. If you have claimed the trading allowance of £1000 you then cannot claim any other expenses. You would therefore need to check what method of expenses is more beneficial to you and amend your return if applicable. You cannot claim both the trading allowance and actual expenses - it is one or other. Further guidance is at : Examples of how to work out Income Tax when you rent out a property   . Thank you .

I had expected the 20% but the bill is obviously much higher than that, can you offer any reasons as to why? Also I dont understand why I have now incurred a tax code change if I am already paying tax on the property why would I be liable for even more? I claimed the £1000 trading allowance if that helps Look forward to hearing back, Thanks

Hi,

You would need to call in order for your record to be accessed as personal information should not be give on this forum.

The Telephone number is 0300 200 3300 .

Thank you.