19 May 2017
BM Solutions updated their rental income tax calculator in November 2016, to support the changes to rental tax income regulations that came in to effect from April 2017.
The calculator is quick and easy to use, and reflects the new regulations to help you calculate the effects of any additional rental income tax liability for your customers.
Here are some Hints and Tips for using their Income tax calculator:
- When entering your customer's share of gross (the amount the tenant pays rather than what the landlord receives) annual rental income, make sure you enter the total gross annual rental income from all properties. Remember for remortgage applications please include the rent from the property being remortgaged
- When asked for the selected product rate, it's important to key the correct interest rate up front (not the product code), as if this changes at illustration stage the level of borrowing may change
- When inputting UK land and property income, you only need to put in the latest year, you don’t need to average the last two years
- The 'employed income' should be as per your customer's latest pay slip rather than an average over the last three months or their latest P60. Remember to declare bonus, overtime, etc
- If your customer's is self employed, remember to include any profit from UK land and property in the 'self-employed income' box.