Colli Real Estate

Rental income as a second income or business Advice Please?

UK only please – Ok so I have a second home, mortgage paid in full. I want to rent and have a tenant that I trust who will be paying rent through Benefit. My questions are:
1. Do I have to inform Inland Revenue of my second income?
2. Is it better to use the property as a business income?
3. Can I offset expenses with repairs, bills, travel ect for both types of rental?
4. Would I have to pay tax on the income in both situations?
5. Is there a limit to annual revenue earned through rental income before I am taxed ect.

I’m sure you would have to pay income tax, but I can’t say for sure.

Here’s some info I’ve found…

http://www.lawpack.co.uk/Knowledge/Property/LandlordAndTenancy/article1632.asp

Contact your local tax office for advice of any business rates, or anything else you might have to pay.

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