P Kong

Dear Sir I would like to clarify the above subjected matters. Assuming rental income and saving interests are my only income sources and I have to fill in self-assessment tax return every year. This year, I have got 45K rental income and saving interest income reaches 10K. Is my calculation below correct: Taxable income = 45000 - 12570 (personal tax allowance) + 9K (10K - 1K saving interest allowance) = 41430 Tax payable is: 7540 (20% of 37700) + 1492(40% of 3730) = 9032 or I can only have 500 saving interest allowance and for the amount that falls under 40% rate should be 4230 and I have to pay 1692+7540 = 9232? Your advice and guidance will be much appreciated.

Dear Sir I have hired a letting agent to manage the rental property for a few months. During this period, the letting agent is responsible to collect the rent and paid me the rent after deducting their fee. When I fill in the tax return, should I just fill in the amount I received from the letting agent as profit or I have to fill in the total amount (including the fee collected by the agent even though I didn't receive that amount) and then deduct that fee as as expenses? I have also hired a few trademen to do repairing and maintenance works, but those trademen after paying them didn't send me the invoice/recipt as agreed even though I kept chasing theme. I did keep the bank transfer record and our black and white conversation as a proof. Under this situation, am I able to include the expenses in my tax return? Appreciate your advice.

Thank you for your reply. How about new sockets which tenants request? They want new sockets to facilitate their appliances. Does this job count as repairs or improvement? How about putting chimney cowl on chimney which tenants request to stop birds and draft from coming from the chimney? Does this work consider as repair or improvement? Tenants also request gravels to be out in the garden to stop weeds. Is this considered as repair or improvement? I also bought a dehumidifier for their use as they complained about damp in one of the rooms. Does the expenses of purchasing the dehumidifier tax deductible? Thank you.

Dear Sir I would like to clarify reporting loss against rental income and NI contribution. I have a rental income of around 3K pounds for 2023/2024. Before the tenants moved in, I have spent more than 5K to repair the houses which I believe is eligible to claim tax deductible allowance. The rental income is my sole income, so I assume the 3K income could be exempted for taxation with my personal tax allowance of 12570 . Under this situation, can I carry forward the total 5K expenditure for the next fiscal year or I can only carry forward 2K loss (5k - 3k) and my personal tax allowance is to be wasted? Also, are expenditures involving taking away old gas fire (advised by gas engineer as dangerous and not energy efficiency) considered repairing / maintenance and tax deductible? I have three rental properties, but I am not running a business, nor am I buying new properties to rent out now. Am I required to make NI contribution? If so, should I make class 2 contribution only (as suggested in the HMRC page below: You have to pay Class 2 National Insurance if your profits are more than £12,570 a year and what you do counts as running a business, for example if all the following apply: being a landlord is your main job you rent out more than one property you’re buying new properties to rent out) Or I have to make both class 2 and class 4 NI contribution? Appreciate your advise and clarification. Thank you