TAX CORNER

On the face of it, working out how much tax you should pay as a landlord is a simple business with little or no wriggle room. You add up your rental income, deduct allowable expenses such as agents' fees and interest on your mortgage for the property or properties, and there you have your taxable income. In practice, though, there are plenty of twists and turns which, depending on how you navigate them, could slice thousands off your tax bill. Before looking at some of the ways you can deflate your annual tax bill, it's worth stating two general rules that you should follow. The first is that although you are not obliged to keep accounts for a UK property rental business (unless you are operating as a company), you must complete a tax return, including the UK Property pages (SA105), and submit it to HM Revenue & Customs. If your property is overseas, you should complete the Foreign Property pages. If you qualify for the Rent a Room Scheme, you may not need to complete a tax return. The second is: Keep good records. If HMRC ever raises an enquiry into your tax affairs, they could ask for all supporting documents. If you have them, this will keep the time and the cost spent on the enquiry to a minimum. Note, too, that rental income must be declared in the tax year in which it is due, even if you do not receive it in that tax year. By Khalid Qadeer ACCOUNTANTS@SW19 Accountants & Business Advisors 383 Durnsford Road Wimbledon London SW19 8EF Telephone: 02088791114 Mobile: 07875221013 Tags: Landlord Accounts, Landlord tax, Property Tax, Rental tax, Rental Income, SW19 Accountants, lettings tax, tax affairs, hmrc, tax year, uk property tax, tax return, property tax return, Lettings agents in Southfields, Letting agents in Wimbledon Park, Estate agents in sw18, letting agent wimbledon, accountants wimbledon