Don’t miss this year's tax filing deadline!
Updated on: Jan. 7, 2020, 9:26 a.m.
Whether you are a landlord or a vendor renting out properties in the UK, HMRC considers you to be a self-employed business owner. This means you need to register and fill in a self assessment tax return by the 31st of January.
If by chance you fail to electronically submit your tax return by the 31st of January, you will be automatically fined a £100 penalty.
Did you know that once you begin to fill in your self assessment, you will need a 10 digit tax reference number? Also known as UTR (Unique Taxpayer Reference) number, it is assigned to you when you first register.
Once you begin to fill in your tax return, make sure you have all the information about the income you’ve received throughout the tax year at hand. You will also need information on the expenses you want to deduct.
One of the biggest challenges landlords and vendors may experience is keeping a record of all their income and expenses, or even knowing what expenses to deduct.
Even though legislation keeps changing the allowable expenses, landlords and vendors are currently able to deduct the following from their tax bill:
- Running costs
- Accounting fees
- Replacement of domestic items (from April 2016)
- Property repair and maintenance costs
- Tax advisor fees
- Letting agent fees
Don’t worry, we’ve got you covered. We understand this may be a lot to take in and self assessments aren’t always straight forward, which is why we're here to help.
If you need further help, please contact your Account Manager at LiFE Residential or email firstname.lastname@example.org. We will refer you to Fusion Consultancy, LiFE’s tax advisors, who offer a free tax consultation service for landlords and vendors.