Rental Income Tax

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     Office

109 Cheetham Hill Road Manchester M8 8PY

   Contact

0161 871 7465

info@thetaxcom.co.uk

    Open Hours

Monday – Saturday: 8am – 6pm
Sunday: 11am — 4pm

How The Taxcom Supports Your Rental Income Tax Journey

Prevention & Preparedness

We assist clients in maintaining accurate financial records and adopting robust strategies to comply with Rental Income Tax regulations.

Expert Representation

We handle all communications with HMRC, ensuring professionalism and precision in every interaction related to Rental Income Tax.

Post-Submission Support

Once your tax return is submitted, we help you improve compliance and manage any queries or issues through ongoing support.

Rental Income Tax Relief for Landlords

Mortgage Interest Tax Relief

Instead of deducting mortgage interest as an expense, landlords now receive a 20% tax credit on interest payments. This change primarily affects higher-rate taxpayers.

The Rent a Room Scheme

If you rent out a furnished room in your home, you may qualify for the Rent a Room Scheme, which allows you to earn up to £7,500 tax-free per year. If two people share ownership of the property.

Wear and Tear Allowance

Landlords of furnished properties can claim tax relief for replacing items such as furniture, appliances, and household utensils.

Declaring Rental Income Tax to HMRC

Self-Assessment Tax Return

Landlords must report rental income on their Self-Assessment tax return (SA100). It is important to complete this process.

Filing Deadlines

5th October: Register for Self-Assessment. 31st January: Online tax return and payment deadline. 31st July: Second payment on account deadline.

Property Income Allowance

If your rental income is below £1,000, you may not need to declare it due to the allowance, but keeping records is advisable.

Non-Compliance Penalties

Failing to declare rental income or submit tax returns on time results in penalties, including late filing and late payment charges.

Industries

Tax Considerations for Non-Resident Landlords

Non-resident landlords (those living abroad for more than six months per year). Under this scheme, either the letting agent or tenant must deduct basic rate tax (20%) from rental payments.

Non-resident landlords can apply to receive rental income without tax deductions by registering with HMRC’s Non-Resident Landlord Scheme and completing a Self-Assessment tax return.

Business people discussing financial information in a professional setting.
Business people discussing financial information in a professional setting.

Consideration

Legal Considerations for Rental Properties

Understanding the legal obligations of rental property ownership is crucial for landlords. Compliance with UK housing laws helps prevent disputes and legal issues. Essential legal considerations include tenancy agreements, eviction processes, safety regulations, and deposit protection schemes. Properly drafted agreements protect both landlords and tenants, ensuring clear terms and responsibilities.

What Our Clients Say.

Maximising Rental Property Profitability Effectively

Enhancing profitability requires strategic planning and efficient property management.

Set Competitive Rent: Research local market rates to determine optimal rental pricing strategies.

Minimise Vacancies: Maintain good tenant relations and advertise proactively to reduce empty periods.

Reduce Operating Costs: Regular maintenance helps avoid costly repairs and improve overall efficiency.

Utilise Tax Deductions: Claim allowable expenses to lower taxable income and increase net earnings.

Enhance Property Value: Upgrade amenities and decor to attract high-quality tenants willing to pay more.

Get a personal consultation.

We will take care of your accounting and administrative services.