Rent a chair income on Tax Return

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lilvikki

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Hi I'm looking for a bit of advice if anyone can help me??

I rent a small salon in which I do nails from. Iv recently done it out so that a hairdresser can rent a space (the landlord is fine with this).

What I'm wanting to know is obviously I will be recieveing rent for this space every week once I find someone suitable.... but what do I put this down as on my tax return?
I usually save so much of my takings as a rule anyways after paying myself and buying new stock, so I'm just thinking do I save most of this too? Do I need to?

Thankyou x
 
Hi I'm looking for a bit of advice if anyone can help me??

I rent a small salon in which I do nails from. Iv recently done it out so that a hairdresser can rent a space (the landlord is fine with this).

What I'm wanting to know is obviously I will be recieveing rent for this space every week once I find someone suitable.... but what do I put this down as on my tax return?
I usually save so much of my takings as a rule anyways after paying myself and buying new stock, so I'm just thinking do I save most of this too? Do I need to?

Thankyou x
Hi

You include this as income received and pay tax on it in the same way you do for your existing business income.

It will also be included in your VAT threshold check each month (if you are not registered).

Are you self employed or a Ltd co? I can then tell you which specific box on the tax return to include it in.
 
Thankyou! I'm self employed x
 
Hi, in that case:

If you complete tax return form SA 103F:
Include the rental income in Box 16 "Any other business income" since this includes income from letting part of your business accommodation.

If however you complete tax return SA 103S:
include the rental income in Box 10 "Any other business income" since this includes income from letting part of your business accommodation.

The first year you include this income in your tax return, it is worth making a note in it, that you are now renting part of your premises out. Saves HMRC asking you later.

Given you are self employed, this income will be included in the calculation of income tax and class 4 national insurance you will owe. So you should put aside the relevant amount for when the time comes.

Hope that helps.
:)
 
That's great, thankyou so much for your help!
 

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