It is becoming increasingly clear that a great deal of landlords out there are not completing a ‘landlord’ tax return and more often than not, this is through no fault of their own.
It seems a significant number of landlords are completely unaware of the existence of the ‘landlord’ tax return, let alone aware that they actually have to complete one. As an accountancy firm, we have seen examples of this time and time again.
The purpose of this blog is to shed some light on this mystery. Despite often being overlooked by many landlords, it is absolutely vital that they complete a return on time to ensure compliance.
If you own and rent out a property you need to submit a tax return to disclose the income you obtained through rental. In order to correctly work out the amount of tax due, you also need to be able to disclose figures of income earned from self-employment or wages and other investments.
As with any form of income, it must be declared. The penalties for failing to complete a tax return can be severe.
|Submission After The Deadline||£100 Fine|
|3 Months Late||£10 a day up to £900|
|6 Months Late||£300 or 5% of tax due|
|12 Months Late||£300 or 5% of tax due|
|*All penalties are additional to the former.|
If you need help ensuring you are fully compliant, we can help. Get in touch.