DUNK1

From the rental income you receive for your house, you can set off the interest only portion of your mortgage plus any other allowable expenses such as repairs, maintenance costs, insurance, advertising etc.

If after deductions you are not making a net profit, then I cannot see how this can effect your tax credits. If on the form it asks for any other income and your net profit is £25 just enter £25, if net profit is Zero just enter Zero.

As veloxuk pointed out, do not forget to inform HMRC because it can have more serious consequences later on if you come to sell your home and you get landed with a large Capital Gains Tax bill, where this could have been reduced probably to zero by careful tax planning. If you left it till you actually sell the property and questions are asked about why rental income was not declared then it could cost a lot more to sort out with penalties, fines, interest etc.

Hello as it is an income you need to complete a self assesment, if inland revenue were to discover it and you never declairing it they will not be sympathetic. It may effect tax credits as its an income, although they will ask further questions

We are currently renting out our house and we are living in a house on my husbands work site. The amount we recieve in rent a month doesn't cover the mortgage payment we make, so we aren't making money from the rental, do we have to declare this to the tax man?

If yes will this have an effect on the tax credits we can recieve, will this be counted as an income?

Any advice would be very grateful.

Thanks