Landlords

As a landlord, you might not consider yourself as self-employed or a small business owner but HMRC do. Therefore, if you’re making money from renting out a property, you’ll need to fill in a Self-Assessment Tax Return.


The Self-Assessment system can seem daunting, especially given constantly changing legislation but we can keep you right on this.
 

What tax do you need to pay?
 

As a landlord you may be due to pay the following:

  • Income Tax

  • National Insurance contributions (NIC’s)

  • Stamp Duty Land Tax

  • Capital Gains Tax

 

Income Tax and NIC’s are due to be paid annually and based on the profit from renting out your property. Stamp Duty and Capital Gains tax only come into play when buying or selling properties.

Registering for Self-Assessment


The first thing you will need to do is register for Self-Assessment. You can do this online with HMRC. This will assign you a Unique Tax Reference number (UTR) which is required to complete your tax return online.


Tax Return Deadlines


The deadline for submitting your tax return is by the 31st January each year. For the tax year ended 5th April 2020, your self-assessment should be completed, filed and any liability paid by the 31st January 2021.


Completing your Self-Assessment


In order to complete your tax return you need the following:

  • P60 from any employment(s) received during the year

  • Details of any income received from renting out the property

  • Details of any expenses incurred as a result of renting out the property

  • Mortgage statement(s) for any properties including schedule of payments (capital and interest)


What expenses can I claim for?


Despite recent changes in relation to finance costs, see a list below

of the tax-deductible expenses:

  • Repairs and maintenance costs

  • Accountancy fees

  • Insurance costs

  • Letting Agent fees

  • Gas and Electricity

  • Cleaning costs

  • Advertising costs

Prices from £150

Complete our Self-Assessment Data Capture Form with as much information as possible and we'll get back to you with a quote.

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