Letting property can take many forms and have many different tax treatments.
Income from letting of a room in a house is often exempt under rent a room relief rules. These do not apply if you do not live in the house or if the room is used for business purposes, such as an office. The relief limit is currently £4,250 per year. If your rent a room relief letting income, including payment for bills, utilities and services is less than this amount then the relief is automatic. The income should still be declared on your tax return but with an exemption claim such that no tax is payable.
If rent a room relief is more than the limit then a choice of claiming the exemption or claiming actual expenses can be made. You cannot claim any expenses and claim the rent a room relief exemption at the same time.
For all landlords we provide a taxation service including preparation of income and expenditure accounts, tax computations and advice on the financial implications of letting. Please contact to discuss your lettings and our services.