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Advice to Letting my House (Specifically tax)


Stevo985

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That's what I was hoping, but apparently not according to Shillz.

If it was I would definitely do it. I'd be £500-£600 a month better off than living on my own.

But with tax payable I'd probably only be £300 ish better off. Which puts me on the fence.

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And you pretty much have to stop thinking about it as 'your house' - it won't be any longer - it'll be a business asset, and someone else's home which they don't have to let you in to if they don't fancy it, regardless of what you put into the contract and what the letting agents tell you (statutory right to quiet enjoyment trumps your rental contract, and letting agents are parasites who don't know the law - there are no qualifications needed, any prat can set up a letting agency).

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Great link Snowy, thanks!

That suggests council tax is deductable as well, but I'd have thought the tenant would pay the council tax on the house, or have I got that wrong?

Having interest deductable will make a difference though as most of my mortgage at the moment is interest!

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Great link Snowy, thanks!

That suggests council tax is deductable as well, but I'd have thought the tenant would pay the council tax on the house, or have I got that wrong?

Having interest deductable will make a difference though as most of my mortgage at the moment is interest!

No probs.

Perhaps they're referring to those void periods that blunther referred to when you'd be responsible for the council tax, I guess?

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That suggests council tax is deductable as well, but I'd have thought the tenant would pay the council tax on the house, or have I got that wrong?

Council tax can be paid by either but usually the tennant. The contract will normally specify who pays what.

Letting is easier (in terms of legality) than most people realise. You can get all the information you need in a book (including contract templates) on the subject. I'd visit your local library if you have the time. Then you can cut out the middle man and advertise it directly on gumtree.

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That's funny, I'd be (and have been) the complete opposite.

Taking a lodger in requires minimal effort, and it's all just extra money in your back pocket. Obviously you should pay tax on that, but I can't imagine many people do, I didn't.

Worked out quite well for me, and I enjoyed the company. Though it helped that she was young and relatively nice.

Open admissions of Tax avoidance.... Beware you'll be targeted by the VT Communist party you Tory bastard.... ;-)

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^^^ It's not tax avoidance :)

If you're renting a room in a house you live in you only have to pay tax if the income is over a certain amount (£4,400 I think)

Council tax can be paid by either but usually the tennant. The contract will normally specify who pays what.

Letting is easier (in terms of legality) than most people realise. You can get all the information you need in a book (including contract templates) on the subject. I'd visit your local library if you have the time. Then you can cut out the middle man and advertise it directly on gumtree.

The only thing that would make me apprehensive about advertising it myself is the greater chance of a void period. I'd have thought with an estate agent they'd be more likely to get someone in than I would on my own.

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