Tax on rental income on own home

Landlord Discussion
1

Evening all.

I have learned that IR treat rental income as wholly taxable even if mortgage is 750 and rent 800.

The 800 rent is added to salary income and taxed, in my case at 40%.

I know things to offset include: landlord insurance ; repairs ; mileage to visit house; a proportion of interest on mortgage. Anything else ?

Now the bad news , through not being informed I have to pay 6 years back tax plus interest and a penalty charge totalling 20k plus.

Any experience of how the revenue approach spreading repayment of tax? Length of period etc given my circumstances, genuine error , the rent simply paying my mortgage while I work away from home.

Thanks

2

I know someone who owed 6years and 80k , they wanted it there and then.
The argument is you have the tax in your pocket and you shouldn’t have as it belongs to the hmrc.
Why should you have a payment plan when others pay on time ?
Pay it up now

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I agree you will be expected to repay very quickly and to sell the property if needed to pay the tax. Ignorance of the laws wont be considered a valid reason.

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Thanks for replies.

Worked out a figure with an accountant and submitted so awaiting response.

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