Rental income tax calculator

Our free buy to let tax calculator

Please note that the online tax calculators may not look right on a mobile device. You are recommended to view the tax calculators on a desktop/laptop

We have created a rental income tax calculator to help you understand how much property tax you will pay to HMRC.

We have built the rental income tax calculator based on you being:

– A basic rate taxpayer earning less than £50,270. Basic rate taxpayers pay 20% income tax on property profits.

– A high rate taxpayer earning more than £50,270 but less than £150,000. High rate taxpayers pay 40% income tax on property profits.

– An additional rate taxpayer earning more than £150,000. Additional rate taxpayers pay 45% income tax on property profits.

Section 24 mortgage interest relief cap means landlords cannot offset all mortgage interest costs against their rental income. HMRC now add back mortgage interest and finance costs, and you pay tax based on your relevant bandings.

HMRC have provided landlords with a tax relief on mortgage interest at 20%. If landlords paid mortgage interest costs of £800, you would get a tax relief of £160 (£800 X 20%). This is irrespective if you are a basic rate taxpayer, a high rate taxpayer or an additional rate taxpayer.

Landlords do not need to worry about how to perform these property tax calculations because our rental income tax calculator does the hard work for you.

Free Online Tax Courses

Want to save tax in the future?

We have now created free online tac courses to help you build wealth whilst paying less tax. Learn today and save tax tomorrow. We have covered the basics of tax filing with HMRC and IRS. We have created courses on advanced planning strategies that will save you tax in the future.

We have training programmes for UK tax and US tax. Learn today and save tax tomorrow

Free online tax course

Free – Access NOW!!

Should you buy a residential buy to let property investment in your name or a limited company?

One of the reasons why landlords use a property company is to save tax. The corporation tax of 19% is less than the basic rate tax band of 20%, much less than the 40% income tax band for high rate taxpayers.

From April 2023, the corporation tax rules change. Any property investment company that makes more than £50,000 in property profits will be put on a sliding scale corporation tax rate from 19% to 25%.

Any property limited company that makes more than £250,000 will be subject to 25% corporation tax from April 2023.

Greater interest charges using a mortgage in a limited company

Our mortgage brokers often tell us that it costs landlords a greater mortgage interest rate to use a property investment company than the mortgage interest rate in the landlord’s name.

However, we have also heard that mortgage interest rates in Furnished Holiday Lets (FHL) and House of Multiple Occupation (HMO) are similar rates of mortgage interest irrespective if the landlords purchases a buy to let in their name or a limited company.

When using the rental income tax calculator, you should understand the mortgage interest rates if you buy in your name or a limited company.

The rental income tax calculator will do all the hard work for you. It will calculate the mortgage finance interest costs to derive your taxable property profits based on the mortgage entered.

Free Online Tax Calculators

We continue to develop brand new U.S and UK tax calculators for you to use. We focus on tax calculators such as: Income Tax, Capital Gains Tax, Stamp Duty Land Tax, Inheritance/Estate Tax

Use our online tax calculators today to help you make money-saving decisions tomorrow

Free online tax calculators

Paying income tax on extracting cash out of a limited company

There are many ways to take money out of a property investment company. It would help if you were mindful as a landlord that owns a property investment company that you pay two lots of tax

– Corporation Tax on the property profits made

– Income tax on any wages/dividends/interest that you extract from the property investment limited company

You do not need to worry about the calculations, as we have done the hard work for you with our rental income tax calculator.

Additional costs of running a property investment company

Landlords need to consider the costs of running a property investment company. Running a property investment company is not always cheap as you have to pay for additional items

– Increased bookkeeping requirements

– Filing of annual accounts to Companies House

– Filing of annual corporation tax returns to HMRC using the CT600 form

– File ATED reports to HMRC each year

Property Limited Company Formation

Are you looking to form a new limited company? See how we can help you set up the right legal and tax efficient stricture for your property investments and property developments

Learn about our services



Use our free landlord tax calculator

You are free to use our landlord tax calculator to see how much tax you will pay if owned in your name or a limited company. Using our rental income tax calculator, you can decide whether to purchase a buy to let property in a limited company or under your name.

For the most part, we see that landlords who are basic rate taxpayers keep investing in property in their name. There are very few tax differences for owning property in their name against owning property inside a limited company.

Use our free rental income tax calculator to see how much tax you will pay in your rental business to HMRC and how much cash you will keep.

Please note that the online tax calculators may not look right on a mobile device. You are recommended to view the tax calculators on a desktop/laptop


Need advice?
Contact us now

Enquire about our ongoing services

Book a call to discuss our property accountancy services

Get in touch

Book a paid for tax consultation

Use the code “Art20” to get 20% discount

Book now

Book a call to see how we can help you.

Consultation options.

We offer the two following options for initial consultations.

CALL OPTION ONE

Our Ongoing Accountancy Services

Fixed price irrespective of how many properties you have

We charge on a fixed monthly fee

  • - Accounts submitted to HMRC & Companies House

  • - 60 minute onboarding tax call

  • - Unlimited 30 minute tax calls

  • - An holistic review of your tax structure and future plans

  • - Annual tax return review to discuss future tax plans

Our Monthly Accountancy Services

CALL OPTION TWO

Tax Consultation + Tax Report + Video Recording

(Free for clients)

Want tax advice right now? Book today

  • - Upload your questions in advance

  • - Our Tax Advisors collectively discuss your questions

  • - A qualified tax advisors discuss the very best solution with you

  • - A tax report & meeting recording is sent within 24 hours

  • - Clarification questions are answered via email

Tax call from £124.95

Booking your appointment.