Landlord Accountants in London

Landlord Accountants London

 

Our Landlord Accountants London will also advise you on accounting records that you need to keep a hold on and guide you on how to invest your rental gains. You or your company must pay tax on the profit you make from renting out the property, after deductions for ‘allowable expenses’.

Allowable expenses are things you need to spend money on in the day-to-day running of the property, like:

 

• letting agents’ fees
• legal fees for lets of a year or less, or for renewing a lease for less than 50 years
• accountants’ fees
• buildings and contents insurance
• interest on property loans
• maintenance and repairs to the property (but not improvements)
• utility bills, like gas, water, and electricity
• rent, ground rent, service charges
• Council Tax
• services you pay for, like cleaning or gardening
• other direct costs of letting the property, like phone calls, stationery, and advertising

Simply call us at 0800 644 1258or drop us an email at [email protected]

You need to pay tax on your rental income if you rent out a property in the UK. You may also need to pay tax if you make it again when you sell residential property in the UK. If you live abroad for 6 months or more per year, you’re classed as a ‘non-resident landlord’ by HM Revenue and Customs (HMRC) – even if you’re a UK resident for tax purposes.

 

How you pay tax

 

You can get your rent either:

• in full and pay tax through Self Assessment – if HMRC allows you to do this
• with tax already deducted by your letting agent or tenant

 

Get your rent in full

 

If you want to pay tax on your rental income through Self Assessment, fill inform NRL1i and send it back to HMRC.

If your application is approved, HMRC will tell your letting agent or tenant not to deduct tax from your rent and you’ll need to declare your income in your Self Assessment tax return.

 

Get your rent with tax deducted

 

Your letting agent or tenant will:

• deduct basic rate tax from your rent (after allowing for any expenses they’ve paid)
• give you a certificate at the end of the tax year saying how much tax they’ve deducted

Accountants for landlords work with a number of nonresident landlords who own properties in the United Kingdom while living abroad. There is a separate process for nonresidents to register with HM Revenue & Customs. The first step is to register as s nonresident landlord by completing a form and then a UTR ( unique tax reference number) is issued by HM Revenue & Customs.

 

Rental income can include money received for a wide variety of things such as:

• letting furnished, unfurnished, commercial and domestic premises or land
• use of the furniture in a rented property
• the grant of certain leases
• sporting rights, such as fishing and shooting permits
• allowing waste to be buried or stored on land
• allowing others to use the property – for example, where a film crew pays to film inside a person’s house
• grants to help with allowable expenses, such as repairs
• enterprise investment schemes
• caravans or houseboats that are not moved around
• insurance policies for non-payment of rent
• service charges