If you’re a landlord, the deadline for filing your landlord tax return for the 2023-2024 income year is fast approaching. Failing to meet the deadline could result in hefty penalties, so it’s crucial to act now. Here’s everything you need to know to get your landlord tax return filed on time and avoid unnecessary stress.
When to File Your Landlord Tax Return
For self-employed landlords, the landlord tax return for the 2023-2024 financial year must be filed by 31 January 2025. This is also the deadline for paying any tax owed, unless you’ve been advised otherwise by HMRC.
Missing this deadline will result in an automatic £100 penalty, which increases the longer the delay. However, if you own your rental property through a limited company, your filing deadline depends on your company’s financial year, so make sure you check your requirements.
How to File Your Landlord Tax Return
You can file your tax return online through the HMRC self-assessment system. If you’re not yet registered with HMRC, don’t wait—register as soon as possible using their online system.
The deadline for submitting paper tax returns for the 2023-2024 tax year has already passed (31 October 2024), so online filing is now your only option.
What You Should Do Now
To make the process of filing your landlord tax return as smooth as possible, start gathering the following information now:
- Income Details: Collect records of all income received from your rental property, including rent, service charges, cleaning fees, or payments for damages.
- Expenses Details: Gather receipts and invoices for all expenses related to your rental property. Many of these can be claimed as allowable expenses to reduce your tax bill.
Tax Return Tips for Landlords
Knowing what you can and cannot claim as allowable expenses is essential when filing your landlord tax return. Here are some key tips:
Expenses You Can Claim
- Maintenance and repairs, no matter how small.
- Letting and estate agents’ fees.
- Legal fees for property transactions or legal advice.
- Accountant and financial adviser fees.
- Service charges and ground rent.
- Council Tax and utility bills you’ve paid.
- Insurance premiums for your rental property.
- Advertising costs for finding tenants.
- Subscriptions to landlord organisations.
- Office expenses, such as stationery, phone bills, or postage.
- Travel costs related to your rental business, such as attending viewings or completing repairs.
Expenses You Cannot Claim
- Capital expenses like building an extension or other improvements.
- Mortgage interest above the 20% basic tax credit.
If your property is furnished or part-furnished, you can also claim domestic items relief for replacing furniture, furnishings, or appliances.
Avoid Last-Minute Stress
Starting your landlord tax return early gives you time to ensure everything is correct and prevents a last-minute rush in January. If you’re unsure about any aspect of your tax return, seek advice from a qualified accountant or financial adviser.
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