Landlord Taxes

Landlord Accounting - Tax implicationIf you are an individual who owns property in the UK that has been rented out, you must file a self-assessment tax return.

You must register for self-assessment at any time during or after the period in which you start earning income from the property. The tax year for a landlord is same as for other self-employer or sole trader businesses i.e. 6th April to 5th April. This is the period for which you have to disclose your property income to HMRC through a self-assessment return.

Upon acceptance of your application, HMRC will allocate you a unique tax reference number (UTR). This number remains the same throughout your life, even if you later become self-employed. On the other hand, if you are already self-employed you are still required to disclose your rental income to HMRC via your self-assessment tax return, using the UTR number already allocated for your self-employment.

You are allowed to deduct allowable expenses from your income, and you will have to pay income tax on the net income amount derived after possible deductions.

If you are not registered as a self-employed individual, you will not need to pay any national insurance contributions on your net income.

To find out more on income tax rates and rules, please follow the link to tax rates.

For preparation of a landlord’s income tax return, we only charge a fixed fee based on the number of properties you receive rent from. Our fee includes:

  • Registering for self-assessment
  • Declaring rental income from property
  • Declaring and deducting allowable expenses to work out profits
  • Preparing and filing your self-assessment tax return
  • Acting as an agent on your behalf
  • Email and telephone support throughout the year
  • Tax planning and advice

Simply get in touch with us by following the contact option at the top of the page and we will get back to you as soon as possible. Alternatively, you can call us at 0208 648 0800 for consultations.

For a quick quotation, fill in the following form

ICAEW Chartered Accountant