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| Are
you renting property? You may need to do a tax return. |
With house prices decreasing,
more and more people are choosing to rent their properties until
the market picks up. We have compiled a list of some of the most
common questions about renting your property and tax returns:
Do I have to
do a tax return if I am renting property?
If your profit from rental property is over £2,500 in the
tax year, you will need to complete a tax return. If the rental
income is below £2,500 and you are employed, you can contact
your local tax office to adjust your PAYE tax code and you will
not need to complete a tax return.
What are allowable expenses for renting a property
If you rent a property you can reduce your tax liability
by offsetting any allowable expenses. These could include:
- letting agent's,
and lawyers/legal fees
- building and contents
insurance costs
- loan interest
- maintenance and repairs
-improvement costs are not allowed
- rent, ground rent
and property service charges
- Council Tax
- advertising your
property to rent
- other costs such
as phone calls
How do I group
my rental property expenses?
If your income for property rental is below £15,000 a year
before any expenses, you can group them all as a single total on
your tax return. If your expenses are above £15,000 you will
need to group them separately and complete the full tax return.
How long do I
need to keep my rental property records for?
Make sure that you keep any records relating to your rental property
tax return for 6 years after the tax year for which it was due,
whether you completed a tax return or not.
Disclaimer: The above information can not be taken
as advice and is for illustration purposes only. Please call Tax
Fix before making any claims or confirmation. Tax Fix can not accept
any liability for action taken and any losses incurred.
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