Adding a Rental Property to Your Income

Clients often share that they’re about to start renting out a property they own, usually expecting an extra £10k–£20k in annual income. While it may seem simple to just add that to their tax return later, the impact can be significant when it comes to thresholds, payments on account, and planning other income like dividends.

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• Input the client’s current salary, dividends, and other income.
• Add £15,000 property income under the same tax year.
• Use the Scenario Planner to planview updated tax due and payments on account.
• Adjust other income (e.g. reduce dividends) to model alternative approaches.
• Discuss results visually to help the client make informed choices.
  

• When clients take on rental income mid-year
• During tax payment forecasting sessions
• When planning how to balance multiple income sources