Property Rental Income Tax Services from Accountants

in Woolwich, London

Make sure you are paying the correct rental income tax with advice from Lesstax 4 U. Serving clients in Woolwich, London, and throughout the UK, we provide expert guidance for landlords and others who profit from property rental. With extensive experience in the industry, we help you fulfil all legal requirements to avoid penalties from HMRC. Get in touch today with any enquiries about property rental taxes.

Calculating Your Taxes

How much you pay depends on how much profit you make after claiming expenses and allowances, as well as your personal circumstances. You must register with HMRC if you have taxable profits from the property you rent out. If you’ve not told HMRC about your property rental previously, you need to do so by 5 October following the tax year you had taxable rental profits.

Allowable Expenses

When you rent out property you may have to pay tax on the profit after taking into consideration all allowable expenses. The expense should be incurred wholly and exclusively as a result of renting out your property.

Some examples of allowable expenses are:

Allowable Expenses

  • General Maintenance and Repair Costs

  • Water Rates, Council Tax, and Gas and Electricity Bills (If Paid By You as the Landlord)

  • Rents, Ground Rents, and Service Charges

  • Direct Costs, such as Phone Calls, Stationery, and Advertising for New Tenants

  • Insurance, including Landlords' Policies for Buildings, Contents, etc.

  • Cost of Services, e.g., Cleaners, Gardeners, Ground Rent

  • Agency and Property Management Fees

Running a Property Business

You are required to pay Class 2 National Insurance if your profits are £11,908 a year or more, and what you do counts as running a business – for example, if all of the following apply:

Running a Property Business

  • Being a Landlord Is Your Main Job

  • You Rent out More Than One Property

  • You’re Buying New Properties to Rent out

  • How to Calculate Your Taxable Rental Profits

There are different rules to follow if you’re:

Running a Property Business 1

  • Renting a Room in Your Home

  • Letting a Property as a Furnished Holiday Letting

  • Renting out Foreign Property

  • Letting a Property in the UK While You Live Abroad

Rates of Tax

Please note that the rate of tax you pay depends on your total income for the year, including any income from employment, self-employment, or pensions.

Paying Rental Income Tax Correctly

As a landlord, you are required to pay property rental income tax on your earnings.

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