This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Tax Free Allowance £1000

Mason1880
Posts: 13
Joined: Fri Apr 13, 2018 8:32 am

Tax Free Allowance £1000

Postby Mason1880 » Sat Mar 02, 2019 6:52 pm

Hi

Looking at the gov.uk site it mentions that the first £1k of property income is tax free.

How does this work in practice, does HMRC calculate this or do I need to show this somewhere in my tax return?

It also states that rental income of less than £1k doesn’t require a return, I guess that is because of my first point above, however is this Gross or Net?

Thanks

D&C
Posts: 61
Joined: Thu Dec 22, 2016 10:04 pm

Re: Tax Free Allowance £1000

Postby D&C » Sun Mar 03, 2019 9:34 am

You may find it useful to look at the tax returns and accompanying notes on gov.uk.

This should show you what options there are.
however is this Gross or Net?
As I understood it you either claimed expenses as normal or the £1,000 allowance. So there cannot be a net figure to start with if you are claiming it

Mason1880
Posts: 13
Joined: Fri Apr 13, 2018 8:32 am

Re: Tax Free Allowance £1000

Postby Mason1880 » Sun Mar 03, 2019 10:08 am

Thanks I’ll take another look.

Also states on the gov website if income is less than £1k you don’t need declare? Again net or gross?

robbob
Posts: 2811
Joined: Wed Aug 06, 2008 4:01 pm

Re: Tax Free Allowance £1000

Postby robbob » Mon Mar 04, 2019 9:28 am

It also states that rental income of less than £1k doesn’t require a return, I guess that is because of my first point above, however is this Gross or Net?
That is income before deduction of 1k "allowance"

So if you use the allowance of 1k (and therefore cant claim expenses)

Income up to £1000 treated as being nil/exempt.

Income £1001 - deduct £1000 - leaving £1 profit subject to tax that needs to be declared to hmrc


Return to “Property Taxation”