Landlords who choose to file a paper tax return – whether this is completed on a self-assessment basis or they would like HMRC to work out how much tax they owe – are reminded that the strict deadline is 31st October.
Those who file their tax return online have until 31st January 2018 to do so – and from April 2020 landlords will be among the first group of people required to submit rental turnover and expense detail digitally each quarter.
Daniel Dowling, technical and compliance director at Leaders, says: “Maintaining accurate and up-to-date tax records is a must for all landlords, as HMRC takes this matter very seriously and has the ability to impose penalties on those who fail to submit a tax return on time.
“It is also important to remember landlords can take advantage of a number of tax allowances that ensure they do not overpay.
“We would also urge landlords to make sure they are on track to switch to the digital system by April 2020 and prepared to submit a quarterly report of rental income thereafter. Anybody with any concerns or who would simply like to alleviate the burden on themselves should get in touch as Leaders can complete much of a tax return on behalf of our landlords.”
Landlords must register for Self-Assessment by 5th October 2017.
Paper tax returns must be filed by 31st October 2017 and online tax returns no later than 31st January 2018.
Landlords can receive tax relief against a number of items. It is worth taking full advantage of this to minimise tax payments and maximise rental profits. Tax deductible items include:
· Letting agents’ fees
· Buildings and contents insurance
· Accountants’ fees
· Ground rent/service charges
· Maintenance and repairs to the property
· Utility bills
· Council tax
· Interest on property loans
Landlords must file accurate tax returns on or before the deadlines. Failure to do so will result in a fixed penalty of £100, rising to a daily £10 fine once a tax return is more than three months’ late.
Some landlords do not have to file a tax return. For instance, those whose rental income does not exceed £2,500 per annum may not be required to do so, although they will still need to disclose their total income to HMRC.
Do you need help with your tax return?
We understand compiling the data and filling in a tax return before submitting it to HMRC can be a long, difficult and tedious process. That’s why we offer a dedicated service to help! We can issue a pre-completed form for any property managed by one of our branches. It comes in an identical format to HMRC’s own Self-Assessment form making it easy to submit.
Simply instruct us to put together a report for your property and we will send you the document by email to help you complete an online return or to send directly to HMRC if you have no further income or expenses to add. This service is designed to take all the time and stress out of your tax return!