if i earn £24000 a year and i receive £450 a month from rental income how much tax will i pay out of the $450

Answer 1

Well you have 5,400 in gross income so your tax bill will be 22% of that = 1,188. Remember you can deduct mortgage interest, repairs and, if it is a furnished residential letting, 10% of net rents to cover the cost of the furnishings (unless you choose to deduct actual cost of replacements).

If you have no expenses, you need to be tucking away 100 a month for your tax.

EDIT: jeanimus below is correct on the amount but if you are going to open a separate savings account to squirrel away the tax you need to be paying in a bit extra to keep it open, in case you need to pay tax twice a year.

Answer 2

In the 06/07 tax year:

24,000 + 5,400= 29,400.
N.B. you can deduct legitimate expenses from your rental income i.e. mortgage interest, repairs and renewals, gas, water, council tax etc.
Taxed as folows:
29,400 - 5,035 (tax-free personal allowance) =24,365.
2,150 @10% = 215
22,215@ 22% = 4,887.30
Therefore, total tax of £5,102.30, based on the 06/07 bands

Your salary would be taxed via PAYE, so you'd pay tax on your rental income through Self-Assessment separately, i.e. by completing a tax return every year and paying the tax over.
Alternatively, you could have the income you receive on rental income offset against your personal allowance, i.e.5,035 tax free -5,400 rental, would mean you'd lose your tax free band for the year but the tax due on you rental income would be collected monthly through you salary.
Hope this makes sense!

Answer 3

I get it to £99 per month if you have no deductible expenses

Answer 4

convert it into sterling and then you will be taxed at 22% on that sterling amount.

Answer 5

22.5% of £450 less your legitimate expenses.