There’s more than one way to pay tax

We are a local, independent letting agency that aims to cater to our client’s every want and need. With over thirty years worth of experience in the property industry, our team is the best when it comes to finding you the right properties for suitable prices. As one of the top businesses working in room to rent Portsmouth has to give, we are the people you’ll want to visit if you’re currently seeking a new home.

Rent a room schemes are optional programmes that can enable you to earn as much as £7,500 tax-free each year. If you are jointly letting, it is £3,750. There’s no requirement for you to be a homeowner to partake in this venture. If you happen to be renting, as long as your lease permits it, you too can rent a room out to a lodger.

When it comes to the subject of paying tax, should the income from your lodger exceed more than £7,500 in the tax year, there are two options available to you. The first is to pay tax on the profit made from the premises itself. This is quantified as income obtained minus allowable payments. Usually, this is a typical arrangement for rental establishments. Option 2 is pay tax on the gross earnings minus the tax-exempt margin, but without the expense privileges.

To decide between your choices, the easiest thing to do would be calculate your expenses. Should they go over the £7,500 threshold, then option one would be the ideal way forward. In the opposite set of circumstances, choose the second possibility. There’s no need for you to stick with one approach; you can switch each year just as long as HM Revenue & Customs knows.

At T1property, we oversee both single and multi-let structures throughout the Portsmouth area. Whether you are a landlord looking to gain a profit, or a tenant who is simply after a place to stay, we will ensure that all of your requirements are properly met.

If are interested in our business and would like to know more about why we are the best for room to rent Portsmouth has, you’re welcome to contact us at anytime.