Renting out my flat and have some questions about tax
Moved into my girlfriend’s flat permanently and decided to rent out my flat because if I sold it I think I would lose money, but I’m not entirely sure. I plan to sell in the near future but I’m currently letting it out through a letting agent. It’s also a safety net for me just incase for whatever reason things with my girlfriend don’t work out and me and my son don’t have to worry about somewhere to live.
So my understanding is HMRC sees that I’m earning an extra £7500 a year and I’m already on a £40,000 salary. Will this affect my tax deductibles on my wage from my job? Or do I have to tax this extra income myself and how do I go about this?
I believe you also get tax credits on the interest on the mortgage I have but I’ve no idea how that works or if it’s all automatically done by HMRC