Landlords reminded to get tax returns in on time
PUBLISHED: 08:00 04 October 2016
Looming tax return deadlines for landlords have prompted reminders to avoid getting caught out.
If you file it by paper, the deadline is this October 31, whereas online filing must be submitted by the end of January next year.
New landlords are required to register in the self-assessment system by the October 5, which follows the end of the tax year for which you need to send in a tax return.
Failure to register or complete tax returns on time can lead to penalties of up to £100 for missed deadlines - with increases for further delays. And any tax owed needs to be paid by the end of January next year.
Landlords could receive tax relief on expenses, such as letting agents’ fees, accountants’ fees, buildings and contents insurance, interest on property loans, maintenance and repairs to property, utility bills, rent, ground rent and service charges and council tax.
And there are exclusions. Not all landlords have to file a tax return. If your rental income is below £2,500 (net of expenses), you may not be required to register for self-assessment. However, you would still need to disclose the income generated but a return will not be necessary.
Leaders estate agent has launched a brand new service for clients to help with what can be a tedious process for landlords. Carole Charge, technical and compliance director at Leaders, said: “It is vital for landlords to keep their tax position up to date. HMRC takes this very seriously and there are penalties for late returns.
“We are now able to assist our landlords by providing a pre-completed form for any property we manage, in an identical format to HMRC’s own self-assessment return form.”
For more information, contact your local branch or visit leaders.co.uk.