Attention Barnsley Landlords: It is Time to Get Started on Your Tax Return!
Tue 26 Nov 2024
Anne Butcher, Managing Director
If you own rental properties in Barnsley, it is crucial to remember that the deadline for submitting your income tax return for the 2023-2024 fiscal year is on the horizon. To help you navigate through this important process, here are some key points you need to keep in mind.
When Should You File Your Tax Return?
As a self-employed landlord, it is your responsibility to submit your tax return using the self-assessment system each year. For the current fiscal year, you must ensure your return is filed and any taxes owed are paid by 31 January 2025—unless you have received alternative instructions from HMRC. Failing to meet this deadline will lead to an automatic penalty of £100, which escalates the longer you delay. However, if your rental properties are owned through a limited company, the filing date will depend on the fiscal year of your company.
How to File Your Tax Return
Steps to Take Right Now
To ensure a smooth filing process, gather all the details regarding the income you have received from your rental properties. This includes not just the rent payments but also any additional income, such as service charges, cleaning fees, or payments for repairs from tenants. Additionally, compile a comprehensive list of all your expenses related to the properties. Be diligent about collecting receipts or invoices for these expenses, as many of them can be claimed as allowable expenses, helping to reduce your taxable income.
Tax Tips for Landlords
While there are certain expenses you cannot claim—such as capital expenditures like building extensions—there are numerous allowable expenses you can take advantage of to optimize your tax return. Remember, you can only claim a 20% basic tax credit on mortgage interest paid. Here is a list of expenses you should consider claiming:
- Maintenance and Repairs: Small or large, do not overlook these costs.
- Letting or Estate Agents' Fees: Any fees incurred while renting out your property.
- Legal Fees: Costs related to buying, selling, or obtaining legal advice.
- Financial and Accounting Fees: Fees paid for professional financial advice or accounting services.
- Service Charges and Ground Rent: Regular costs associated with the upkeep of your property.
- Council Tax: If you have paid this on behalf of your tenants or for your property.
- Utilities: Any utility bills you have covered.
- Insurance Premiums: Protect your property with insurance.
- Advertising Costs: Expenses incurred to market your rental properties.
- Subscriptions: Membership fees for landlords' organizations that provide valuable resources.
- Office Expenses: Small costs like stationery, phone calls, and postage.
- Travel Costs: Expenses for travel related to property viewings or repairs.
If your rental property is furnished or partially furnished, you can also benefit from domestic item relief, which allows you to claim for items like furniture and appliances that you replace.Seeking Assistance
If navigating your tax return feels overwhelming, do not hesitate to seek help from a financial advisor or accountant. They can provide valuable insights and make the process much easier for you.
Now’s the time to act—getting started on your tax return ahead of the January rush can save you from unnecessary stress and ensure that you are accurately reporting your income and claiming all eligible expenses. Do not wait until the last minute; take charge and simplify your tax season!
Are you thinking about renting out your property? We are here to help you find the ideal tenant and manage your rental effectively. Our resolute lettings teams utilize extensive national advertising campaigns to connect you with the right audience. With over 35 years of experience in property lettings, we uphold the highest standards of professionalism in the rental market.
Specialising in properties throughout the Barnsley and HD8 areas, we focus on quality management rather than just increasing our portfolio. Your property matters to us, and we appreciate the trust you place in our services as your letting agent. Our offices in Denby Dale and Penistone are committed to providing personalised services that reflect our dedication to outstanding customer care.
Whether you are a first-time landlord or have a diverse portfolio, it is vital to have a professional agent guiding you through the process, from marketing to tenant placement. We offer tailored letting services to meet your specific needs and would be happy to discuss your requirements. Contact our office for a complimentary, no-obligation rental appraisal, and let us work together to ensure your property investment’s success!
When Should You File Your Tax Return?
As a self-employed landlord, it is your responsibility to submit your tax return using the self-assessment system each year. For the current fiscal year, you must ensure your return is filed and any taxes owed are paid by 31 January 2025—unless you have received alternative instructions from HMRC. Failing to meet this deadline will lead to an automatic penalty of £100, which escalates the longer you delay. However, if your rental properties are owned through a limited company, the filing date will depend on the fiscal year of your company.How to File Your Tax Return
Filing your tax return online is the most efficient option. If you have not registered with HMRC yet, you can easily do so through their official website. Please note that it is no longer possible to file your tax return for the 2023-2024 period using a paper form, as the deadline for paper submissions was the 31st of October.
Steps to Take Right Now
To ensure a smooth filing process, gather all the details regarding the income you have received from your rental properties. This includes not just the rent payments but also any additional income, such as service charges, cleaning fees, or payments for repairs from tenants. Additionally, compile a comprehensive list of all your expenses related to the properties. Be diligent about collecting receipts or invoices for these expenses, as many of them can be claimed as allowable expenses, helping to reduce your taxable income.Tax Tips for Landlords
While there are certain expenses you cannot claim—such as capital expenditures like building extensions—there are numerous allowable expenses you can take advantage of to optimize your tax return. Remember, you can only claim a 20% basic tax credit on mortgage interest paid. Here is a list of expenses you should consider claiming: - Maintenance and Repairs: Small or large, do not overlook these costs.
- Letting or Estate Agents' Fees: Any fees incurred while renting out your property.
- Legal Fees: Costs related to buying, selling, or obtaining legal advice.
- Financial and Accounting Fees: Fees paid for professional financial advice or accounting services.
- Service Charges and Ground Rent: Regular costs associated with the upkeep of your property.
- Council Tax: If you have paid this on behalf of your tenants or for your property.
- Utilities: Any utility bills you have covered.
- Insurance Premiums: Protect your property with insurance.
- Advertising Costs: Expenses incurred to market your rental properties.
- Subscriptions: Membership fees for landlords' organizations that provide valuable resources.
- Office Expenses: Small costs like stationery, phone calls, and postage.
- Travel Costs: Expenses for travel related to property viewings or repairs.
If your rental property is furnished or partially furnished, you can also benefit from domestic item relief, which allows you to claim for items like furniture and appliances that you replace.
Seeking Assistance
If navigating your tax return feels overwhelming, do not hesitate to seek help from a financial advisor or accountant. They can provide valuable insights and make the process much easier for you.Now’s the time to act—getting started on your tax return ahead of the January rush can save you from unnecessary stress and ensure that you are accurately reporting your income and claiming all eligible expenses. Do not wait until the last minute; take charge and simplify your tax season!
Landlords in Barnsley
Specialising in properties throughout the Barnsley and HD8 areas, we focus on quality management rather than just increasing our portfolio. Your property matters to us, and we appreciate the trust you place in our services as your letting agent. Our offices in Denby Dale and Penistone are committed to providing personalised services that reflect our dedication to outstanding customer care.
Whether you are a first-time landlord or have a diverse portfolio, it is vital to have a professional agent guiding you through the process, from marketing to tenant placement. We offer tailored letting services to meet your specific needs and would be happy to discuss your requirements. Contact our office for a complimentary, no-obligation rental appraisal, and let us work together to ensure your property investment’s success!