If you own a second property as a Landlord or Landlady you are required by law to declare your income and pay tax. Please note some landlords and/or landladies are under the misconception that if they do not make a profit letting out their properties, they do not have to declare their rental income. They couldnt be more wrong.
It is an offence to withhold income and not declare themselves to HMRC. HMRC will issue penalty fines and interest on undeclared income on property lets.
Aware of this situation HMRC has been actively looking to target this sector to increase revenues into HMRC coffers.
The key is that all expenses claimed should be “wholly and exclusively” for the purpose of the rental of the properties and not capital items. Taxreturnservice.co.uk can prepare tax return’s for landlord and landladies for only £49.95
One of the other main allowances Landlords or Landladies of rental income properties is the wear and tear allowance on furnished properties of 10% that can be claimed as well as the ” rent a room” allowance of 10% of rental income.
Our tax advisors can tell you what usual expenses can be claimed to offset against rental income. Some common examples are repairs and renewals on the property, cleaning, charge for inventories, letting agent fees, mainenance contracts ( such as heating and gas), accountancy, agreement fees for less than a year,rental warranties and legal expenses insurance, building insurances. Please contact us for a full list or simply register for our tax return service and we will help you claim as many expenses as possible.