Are you a landlord? If so then you are self-employed or a small business owner in the eyes of HMRC as you are making money from renting a property. Therefore, you need to complete a Self-Assessment tax return.
Legislation around this area and what tax needs to be paid is forever changing but the main ones are:
- Income Tax
- National Insurance Contributions (NICs)
- Stamp Duty Land Tax
- Capital Gains Tax (CGT)
Stamp Duty Land Tax and CGT only need be of concern if a property has been bought and sold.
Income Tax and NICs are paid annually and based on the income from renting out any properties. To pay these you need to complete a Self-Assessment tax return. This is broadly speaking the same if you are a landlord, small business owner or sole trader.
The first thing you need to do is register for Self-Assessment and once done you can file your tax return.
If you have started a limited company for the purposes of your rental properties, then you will need to register for Corporation Tax and follow the process for this type of taxation.
To complete your Self-Assessment, you need to keep records of all your income and expenses. As a landlord the following can be deducted from your rental income:
- Property repair and maintenance costs
- Replacement of domestic items (from April 2016)
- Accounting fees
- Insurance
- Running costs
Depending on the cost the tenants pay themselves you can also claim for:
- Letting agent fees
- Light and heating costs
- Service charges
- Ground rent
- Cleaning costs
- Advertising costs
Taxation around rental properties does change often so you do need to be aware of any changes, plus your own personal circumstances will depend on what you will need to pay. To read further about this then Simply Business have further links that are useful to read around this area.
If you need our assistance around this area, then please call us on 0113 2864486.
Source: Simply Business
Photo: Photo by Toa Heftiba on Unsplash
Our Services
-
Company Year End
The legal and compliance burden put on businesses through the need to submit tax returns and other such documents to strict deadlines is often one of the most stressful elements of running a business.
-
Payroll and Auto Enrolment
Employing people can cause stress for a business owner for many reasons and one of these is payroll. Our teams expect that they will be paid on time and with the correct level of deductions made. We can provide a full payroll service for your business including auto-enrolment, keeping you compliant with your many legal responsibilities.
Pop in or give us a call
We'd love to hear from you
When it comes to supporting small enterprises, helping them grow whilst avoiding regulatory and commercial pitfalls, we have a weath of experience, expertise and a kettle - a very good kettle. If you think we could be a good fit, get in touch to see how we can add value to your business.
Contact
About us