Self-Assessment Tax Returns For Landlords

Tax returns for landlords depend on the profit and the personal circumstances of the individual. Certainly, there are times that no tax return needs to be completed for rental income ...

HMRC says that if you have taxable profits from your rental property, then you much contact them to declare it. The deadline for this is the 5th of October after the end of the tax year that the taxable rental profits arise.

However, those with very small amounts of profit can choose between filing a tax return or getting their PAYE code adjusted accordingly!

When rental income is greater than £10,000 before allowable expenses, then HMRC will usually ask the landlord to file a tax return. Below this limit then a PAYE code adjustment can be made. However, if you do get a tax return from HMRC, then it has to be filled in and returned.

You can get up to £1,000 a year in tax-free allowances for property income. This means that if your annual gross property income is £1,000 or less, you don't have to tell HMRC or declare this income on a tax return. Of course, 'Gross Income' means the total amount you receive before any allowances or expenses are taken out and you must keep records of this income.

"You can use the tax-free allowance instead of deducting any expenses or other allowances!"

If your expenses are more than £1,000, you should claim expenses rather than use the allowance, and finally, if you own a property with someone else, you're each eligible for the £1,000 allowance against your own share of the gross rental income.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.