Landlord Tax Return

Personal Tax Return Services for UK Residents and Non Resident Landlords.
Landlord Accountants London

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 on 0800 644 1258or drop us an email at info@accotax.co.uk.

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 a gain 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.

HMRC will not approve your application if your taxes aren’t up to date, eg you’re late with your tax returns or payments.

Get your rent with tax deducted

Your letting agent or tenant will:

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

If you don’t have a letting agent and your tenant pays you more than £100 a week in rent, they’ll deduct the tax from their rent payments to you.

Courtesy: HMRC

Please get in touch with us on 02034411258 or drop us an email at info@accotax.co.uk.

We work with number of non resident landlords who owns properties in the United Kingdom while living abroad. There is a separate process for non residents to register with HM Revenue & Customs. The first step is to register as s non resident 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
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