It’s not easy being able to call yourself a fortunate landlord. In order to be a successful one, it takes a lot of hard work and dedication. In order to be the best landlord you can be, it helps when you are clued up on the ins and out – what is required of you and how you make sure you are paying your taxes correctly.
Once you have a property ready let out, you need to make sure you understand what kind of landlord you are going to be, as there are different types which come with differentiating tax implications. As a landlord you need to be aware of the different types of tax, these are:
Being a landlord takes a lot of responsibility and you will have to consider whether you are willing to manage the property yourself or by a letting agent. Either comes with its positives and negatives which is why we suggest you research into both options before making a final decision.
Additionally, it is vital to understand what you are entitled to as a landlord, and in fact being one means you can claim or expense anything directly relating to your property maintenance. Of course, this must be done within reason and would include the likes of letting agent fees, accounting fees, rent, insurance, gas, electricity and repairs.
As most people are aware HMRC are brutal and most definitely won’t be lenient when it comes to failure of any rental income disclosure. It is crucial to keep on track of your tax, ensuring you are communicating any changes and keeping clear documentation of all of your records. As a professional landlord, HMRC will expect you to be clued up and in the know regarding your tax and expenses. So, best not let them down!
AA&T our Essex accountants are here to help if you are feeling a little lost or confused regarding paying taxes. We are fully aware landlords have a long list of tasks and things they need to be doing, which is why we want to take away all of that stress and unnecessary worry. We specialise in Taxation; an area which may not be your strong point. We can provide a friendly face to help you deal with your appropriate taxes and ensure there is no need for the dreaded HMRC to come knocking.