Leigh on sea Landlords: Do you need to tell the HMRC you rent your Property? Do you have own a rental property?

If your income from property rent is more than £2,500 a year you have to complete a self assessment tax return. If it’s less than £2,500 a year, you need to call the Self Assessment Helpline to report it.

There are different tax rules for residential properties, furnished holiday lettings and commercial properties.

With respect of residential properties -

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

Allowable expenses don’t include ‘capital expenditure’ - like buying a property (repayment element of mortgage) or renovating it beyond repairs for wear and tear.

Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01702 4777754 
Robert@castleestateagentsltd.co.uk or call in and see me at
 91 Broadway west, Leigh on sea ss9 2b