Questions and Answers
Will I pay tax on renting out my driveway?
I live on a commuter belt and I was considering advertising my driveway for rent. Will I pay tax on renting out my driveway?
Possibly, it will depend on your circumstances and how much rent you’re planning to charge.
However, in April 2017 two new £1,000 allowances for property and trading income were introduced. If your income (before expenses) is less than the allowance, you don’t have to declare the income or pay tax on it.
If your income exceeds the £1,000 allowance, you have the choice to deduct the allowance or the actual expenses from your income when you’re calculating your profits.
The main exclusion is that neither of the new allowances apply to partnership income from carrying on a trade, profession or property business in partnership.
The new allowances have yet to be legislated but the government has confirmed that they will be included in the Second Finance Bill expected this Autumn and will be effective from April 2017 as announced.
If you'd like any help handling your tax affairs, please get in touch with your local TaxAssist Accountant who would be happy to help.
Date published 1 Sep 2017
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.