Varying information about tax on accidental let


verity charles

New Member

I was hoping someone could help me, I have tried to use 10+ different BTL calculators and have spoken to HMRC but cant seem to get a straight answer and thus have an ability to work out if I am going to lose money renting:

I have renovated a property that I am struggling to sell, so am considering renting it out for a year or two
My mortgage repayments are £700pm on a 2.7% 25 year
The rental yield is 900pm + 1000 a year ground rent and service charge
I am a 40% tax payer
I am just trying to work out what profit if any I would make after my mortgage is paid - some estimates seem to say I would pay 5k a year to rent out in tax, but there doesn't seem to be any visibility on how in or out of pocket I would be considering I am paying 700pm to the bank as all the calculators just ask for the interest not my actual payments?

Any help massively appreciated

Thank you



Active Member
One thing you learn but HMRC, they never give you any advice until you have taken action. Only then will they penalise you if you got it wrong. Right way for them to operate? No, but that’s the way HMRC work.


Active Member
The issue of mortgage tax relief is one you should look at very closely. This is being slowly tapered down to basic rate tax. This will have a significant impact upon your profitability and ultimately your tax. Have you considered transferring your property into a limited company?