A popular topic among home owners and property land lords alike dealing with property rental business, Accountants Windsor often receive queries relating to this relief, such as:
Rent a Room Relief (RRR) has been around since early 1990’s open to any individual on his own right or jointly. The original idea was to help increase the availability of variety short term housing at rather lower cost by providing tax incentive to private home owners.
RRR is not linked to the type of tenant but to the type of accommodation.
Any person letting a room, or a portion of their residence as furnished accommodation is eligible for this relief. The letting can be short term or long term comprise not only of a normal property but also boats and caravans as well.
The scope of the relief is also extended to include any income which arises from the provision of other services attached or incidental to rental proceeds such as hot meals, cleaning and laundry etc.
The building or property being let must be person’s only or private residence. A joint claim can also be made if the property is owned by more than one individual, according to their stakes percentage.
A residence which is temporarily divided into two separate self-contained units may also be classified as a single residence for this purpose. However, such division can be probed in to my HMRC requiring further clarification before full relief is allowed as accountants in slough has experienced.
In some cases where RRR is not applicable, a rather simple relief of (£1,000) property allowance may be somewhat comforting alternative. The two reliefs are different in their nature and the later can only be claimed if your total rental income is less than or no more than £1000 in the tax year.
Since it’s an automatic relief, accountants slough suggests that you do not declare such income on your tax return and depending on your personal circumstances you may choose between deducting your actual rental expenses or the property allowance from the gross rental income to arrive at the taxable profit.
Currently a maximum relief of £7,500 is available on gross rental income and on other services inclusive as it can also be split between the joint landlords. No claim form as such needs filling in for the claim. Our accountants in ascot are there to provide full support. It’s worth noting however that no property allowance is available if RRR is already claimed on the same rental income.
Windsor accountants suggest It’s definitely worth considering this avenue if you have a spare room or portion available in your main residence to give a boost to your tax-free income without getting to do any complex tax planning. The tax may come at basic or higher rate depending on an individual’s circumstances. Our Slough accountants have special expertise in dealing with all property landlord accounts and will be glad to advise on any related issue as Accounttax is dedicated to makes it possible with an absolute commitment to excellence in client services.
Helping business and professionals, accountants in slough as small business accountants and tax advisors have a strong idea of the needs and services you require. With our experience and the insight, which accountants in Windsor have gained over the years ensures professionalism with your best interests in mind.
Accountants Windsor can also stay on top of any legislation changes that may happen throughout the year. Ultimately, this will help accountants slough to understand your specific area weather it’s IT Contractors or CIS Contractors, Property landlords or Property developers, Doctors or solicitors, Small business or a limited company, which will then let accountants in Marlow to give you the best possible service that is tailored to you and your business’ needs.
We offer a range of accountancy services local to Windsor, Ascot and maidenhead can help you keep your business successful. Some of these services include:
Accountants in maidenhead will support you and your business, by doing so you can rest and stop worrying about the business. You can trust our professionals to take care of your business for you. Now you can focus on being exceptional entrepreneur.
We pride ourselves on providing excellent services in Thames valley including slough, Marlow and Bracknell areas to businesses and professional clients who are keen to improve their business model. Working with us can ensure that you are well prepared for the future of your business with full control and confidence.
For more information on how we can support you and your practice, call us today on 01753 299 993.
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The above information is provided for general guidance only without the taking any liability, written or implied, on the part of this firm, its officers and staff. It may not cover your specific business or personal situations, so you should avoid relying on it. It is important that you seek appropriate professional advice where you can provide the full facts of the case and all related documents. This firm or its officers cannot be held responsible for the consequences of any action or the consequences of determining not to act.