Tax on property – high or low rate?
7:34 AM, 12th April 2017, 9 years ago
3
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I have 2 buy to lets in West Yorkshire.
I have a salary of £30k from a full time job.
Each property annual turnover is 6000.
I also have a vitamin company with net profit £20k
Will I be high tax band or low?
Thanks
Amjed
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Member Since January 2011 - Comments: 12193 - Articles: 1395
7:38 AM, 12th April 2017, About 9 years ago
Hi Amjed
You will begin paying the higher rate tax when your “taxable income” exceeds £43,000.
To calculate this you need to work out the following:-
Salary + dividends from your company + net profit from your rental properties + disallowed finance costs .
In the 2017/18 tax year the amount is disallowed finance costs will be 25% of the finance costs incurred in respect of individually owned residential rental properties.
If in doubt you should appoint an accountant.
.
Member Since June 2016 - Comments: 21
9:23 AM, 12th April 2017, About 9 years ago
Nice to see another Amjed on this forum.
A good accountant will not only tell you your tax band but would help to organise your affairs more efficiently.
Out of curiosity which vitamins does your company sell? As this isn’t property related you could email me [email protected].
Member Since September 2013 - Comments: 534 - Articles: 2
1:07 PM, 12th April 2017, About 9 years ago
Try a web version estimator here: http://scruffypropertywanted.com/s24 – if you are affected – contact Mark Alexander or your accountant.