£99 fixed fee for hassle free Landlord tax return
Under the self-assessment rules an individual is responsible for ensuring that their tax returns are accurately calculated, returns submitted and taxes paid on time. My Tax Accountants can help you fulfill your obligations in a timely stress free manner.
To help with your record keeping here is your FREE excel template
Our self-assessment tax return services:
- We will complete your tax return and all necessary schedules
- Calculate your tax
- Provide you with a copy and obtain your approval
- Submit online on your behalf to HMRC
- Deal with the HMRC on your behalf
Below is a list of commonly asked landlord tax return questions, we strongly suggest you contact us prior to acting upon any of the information contained within this website. If your questions is not answered below please contact us.
Yes, any individual who receives income from letting a property is usually required to declare this to the HM Revenue & Customs.
Landlords still need to submit self-assessment tax returns, even if they do not make a profit.
If you don't already receive a self-assessment tax return, you must register with HMRC and notify them of any rental income by 5 October after the end of the tax year (5 April).
Under the self-assessment rules an individual is responsible for ensuring that their returns are accurately calculated, returns submitted and taxes paid on time.
If you do not inform the HMRC that you are renting out a property, you will likely face a penalty. The late penalty fees start from £100, even if you have no tax to pay. In serious cases you may be asked to pay up to 100% of the tax due, in addition to the late filing.
If the thought of filling in your own tax return fills you with dread, you're not alone. My Tax Accountants will be happy to help with self-assessment tax returns to ensure you meet your obligations and avoid late filing penalties. We will deal with completing your tax return accurately and fast, giving you peace of mind and comfort in the knowledge your affairs have been dealt with by professionals. We will prepare the forms with all backing information; obtain your approval before submitting them online to HMRC.
We will complete your tax return and all necessary schedules and obtain your approval prior to submitting to HMRC. We will then handle any queries on your behalf, giving you complete piece of mind.
£99, each additional property is only £45, that’s all. Please contact us if you have 5 or more properties.
Tax returns are issued around the first week of April and are usually required to be filed by 31st January online (31st of October via paper submission). The tax year runs from 6th April to 5th April the following year. However, we recommend submitting tax returns sooner rather than later to avoid the late rush closer to the submission deadline.
Tax returns are only issued to those people that have registered with the HMRC, to find out if need to submit a Self-Assessment tax return please do not hesitate to contact us.
You can share ownership of rental property with other people but how the rental income is taxed will depend on your share of the property. This is usually taxed in equal shares.
Record keeping is very important. You must keep accurate records of rent received and your expenses incurred to work out your profit. HMRC may charge a penalty if records are not retained, inaccurate or incomplete.
You have to pay tax on the profits you make in each tax year – these run from 6 April, to 5 April the following year. We will work out your profit which is the rental income less all allowable expenses; this is then charged at your appropriate tax rate. Put simply, your profit is the sum left once you’ve added together your rental income and deducted any allowable expenses or allowances.
Special rules apply to the treatment of losses. Losses from UK rental properties may be carried forward to set against future profits from your UK properties. Whilst profits are added to your income and taxed at the highest rates, generally speaking losses are not offset against other sources of income.
We are an independent accounting practice providing expertise from our senior qualified Chartered Management Accountant. With over a decade of Financial, Accountancy & Administration experience our aim is to provide a professional, reliable, personalised service when you need it most. My Tax Accountants is your local accountancy practice.
The rental income for small lettings (under £15k p.a.) is normally calculated as the cash received. Taxable rent from all other lettings is taxable on an earned or receivable basis though relief is normally given for unrecovered rental.
You must declare rental income for the tax year it’s due, even if you’re not paid until the tax year is over.
You may deduct any allowable expenses which relate to work done for a particular tax year, it does not make a difference whether the expense is actually paid before or after the end of the tax year.
If you have several properties, all rental receipts and expenses can be lumped together, so expenses on one property can be deducted from receipts on another.
Allowable expenses are expenses that are usually incurred in the maintenance of the property. For example it will include items such as interest on property loans, letting agents’ fees, accountants’ fees, buildings and contents insurance, maintenance and repairs to the property (but not improvements), rent, ground rent, service charges, Council Tax etc. It is important to differentiate initial and capital costs from running costs.
Unfortunately no, the Landlord’s Energy Saving Allowance ended in April 2015.
From 6 April 2016 this allowance has been removed, there is now replacement furniture relief instead.
Tax relief will be given against their rental income for the cost of a replacement items. However, this is for a like for like replacement so adjustments may need to be made for improvements, proceeds from the old item and the cost of disposing of the old item. These items include moveable furniture
or furnishings, such as beds or sofas, televisions, fridges, freezers, and other white goods, carpets and floor-coverings, curtains, linen, crockery or cutlery, tables and other similar furniture.
No allowance is given for the cost of initial furnishings or equipment.
Finance costs can be claimed; however from April 2017 there will be a gradual reduction in the amount of tax relief given for mortgage or loan interest. These restrictions will be phased in with the effect being to limit tax relief to basic rate.
It depends; the rules are more complex and would depend on your circumstances. If you increase your mortgage loan on your rental let property the additional interest may be tax deductible but only up to the capital value of the property when it was first placed on the rental market. Any interest over and above this is not tax deductible. However, please note that the finance costs limit relief restricts the tax relief to the basic rate.
Generally speaking, the cost of improvements is normally treated as increasing the base cost of the investment (not maintenance cost) and therefore not an allowable expense. Any work undertaken make the property inhabitable or to bring it to the rental market are likely to be classified as ‘capital’ works’ because the y improve the property. Capital costs and set-up costs, which are capitalised, are usually relieved for tax purposes against the calculation of the gain on sale of the investment property.
Income from letting a UK property will remain subject to UK tax. Depending on your circumstances and residency status there may be other action required. Please contact us to discuss in more detail.
We need to ensure all of your tax return are correctly filed, any losses that have been carried forward are usually lost (they cannot be offset against any other income). If you start to rent out property again within three years you will usually be able to set earlier property losses against any profits from the new property.
You need to notify the HMRC if you sold a property and made a taxable capital gain. The disposal proceeds are potentially subject to capital gains tax. The gain is calculated by deducting expenses from the sales proceeds. There are reliefs available, please contact us to discuss.
HMRC will permit the use of a 'cash basis' for lettings where gross rental income does not exceed £15,000 per annum provided it is adopted consistently and does not materially affect results. In other cases, the strict 'earnings basis' must be used with adjustments made for amounts in advance and in arrear.