Staying on top of your landlord tax liabilities
Staying on top of your landlord tax liabilities is essential for effective financial management and compliance with tax regulations
As if buy to let tax wasn’t fiddly enough, the rules can also change fairly regularly, so it’s important that you have a way of making sure you stay on the right side of HMRC.
By far the best way to make sure you meet your tax obligations but don’t pay more than you need to, is to engage a professional property tax expert – ideally someone who already has buy to let clients or is a landlord themselves. They can give advice that’s tailored to your own circumstances and complete your tax return on your behalf.
Even if you use a professional to handle all your bookkeeping and tax affairs, the more you know about tax yourself, the more productive your conversations with tax and financial advisers will be.
One way you can gain a better understanding is by attending one of the NRLA’s tax training courses for landlords, which include ‘Saving Property Tax’, ‘Capital Gains Tax’ and ‘Inheritance Tax’.
If you choose to file your tax return yourself, Which?, working with GoSimpleTax, has an online tax calculator that could be helpful. It lets you select your different sources of income – breaking it down clearly into categories including ‘Employment’, ‘Property’, ‘Furnished Holiday Lettings’ and ‘Rent a room’ - and then takes you through each one, step by step.
This tool is officially recognised by HMRC and has handy tips throughout that could alert you to allowances and expenses you may have overlooked.
Click here to access the tool.
Of course, we will continue to keep our own information up to date, so please do keep referring back to this guide and follow us on Facebook, Twitter and YouTube for all the latest property news.
