Self-Assessment

Certain benefits attract additional National Insurance Contributions, known as Class 1A NIC. This is cost to your company but does not count towards your contributions for state benefits.

No - you do not include those expenses which are wholly business expenses that you incur personally.

There are two forms that should be considered when reporting benefits in kind with HMRC: Form Plld and Form Plld(b).

The Rent a Room scheme is available to those who rent part of their only home to a lodger. A lodger is someone who pays to live in your home, sometimes with meals provided, and who often shares the family rooms.

When purchasing a buy to let property, the Stamp Duty will be higher than when purchasing your own home. The rates for a second property are based on the purchase price of the property and are calculated as follows:

Any improvement costs to the property or replacement of integrated appliances i.e. kitchen and bathroom refitting, would not be treated as an expense against your rental income. This is because these are deemed to add value to the property. Instead, you would be able to claim these at the point that you sell the property to reduce the tax on the amount that you make from the sale.

When declaring your rental income on a Self-Assessment, you can claim the costs in managing and maintaining the property, reducing the tax you will pay. The most common expenses are:

No - since April 2020, you're no longer able to deduct any of your mortgage expenses from your rental income to reduce your tax bill.

Yes - when you have rental income from properties in the UK or abroad remember that you need to declare the income on your self-assessment, if you are a UK resident. If you are not a UK resident then you must include your UK sourced rental income in a UK self-assessment return. This includes a rental property, second property and portfolio of properties.

Yes - if you are UK resident you may be liable to Capital Gains Tax on disposals of assets located anywhere in the world, (not just in the UK).