Self Assessment Tax Returns for Landlord

Self Assessment Tax Returns for Landlord

If you're a landlord in the UK and need to complete a self-assessment tax return, here are the key steps and considerations:

1. Determine Your Tax Status

If you earn income from renting out property, you must report this income to HMRC on your self-assessment tax return.

2. Register for Self-Assessment

If you haven't done so, register with HMRC for self-assessment. You can do this online or by paper, please click here to register.

3. Keep Accurate Records

Maintain detailed records of all income and expenses related to your rental properties. This includes:
Rental income
Repairs and maintenance costs
Insurance
Mortage Interest
Property management fees

4. Calculate Your Profit

Rental income minus allowable expenses equals your taxable profit. Please, ensure you only claim expenses that are necessary for the maintenance of your property.

5. Complete the Self-Assessment Form

Fill out the self-assessment tax return form, reporting your rental income and expenses on the “Property” section. At SJM Properties, we offer a free year end tax report to help submit your return, or enable you to pass over to your accountant for completion.

6. Claim Allowable Expenses

You can typically claim:
Repairs (but not improvements)
Utilities (if you pay them for tenants)
Council tax (if you pay it)
Travel expenses (for property management)

7. Submit Your Return

Submit your completed self-assessment return online or by post by the deadline (usually 31 January following the end of the tax year).

8. Pay Your Tax

Calculate how much tax you owe and make the payment by the deadline to avoid penalties.

9. Consider Professional Advice

If you're unsure about any aspect of your self-assessment, consider consulting an accountant or tax advisor familiar with property income.

We recommend our trusted accountant Sarah at SJ Accounting who specialises in year end tax returns, please click here to see the website for more information.

10. Keep Updated

Tax laws can change, so stay informed about any updates that may affect your obligations as a landlord.

If you have any questions, or need any assistance please feel free to contact our team on 01823 740056 or email info@sjmpropertiessw.com