how much income tax do you pay from rental income
Your rental profits are taxed at the same rates as income you receive from your business or employment â 20%, 40% or 45%, depending on which tax band the income falls into. You have to pay tax on the profits you make in each tax year â these run from 6 April, to 5 April the following year.You must declare rental income for the tax year itâs due, even if youâre not paid until the tax year is over.In terms of expenses, you can deduct any allowable expenses which relate to work done for a particular tax year â it doesnât matter whether you pay the bill before or after the end of the tax year.aying your tax. You have to pay tax on the profits you make in each tax year â these run from 6 April, to 5 April the following year. You must declare rental income for the tax year itâs due, even if youâre not paid until the tax year is over.