How UK employees can pay tax on rental income ?
Put together a statement of what you expect your rental income will be and what allowable expenses you are claiming. Send this to your PAYE inspector and he will reduce your code by one tenth of the expected income. The tax deducted from your pay will then be increased by the correct amount. At the end of each tax year, you complete a return showing the actual income and expenses and any overpayment or underpayment is taken into account in the next year’s tax code.
