Simple steps for UK landlords to complete their tax return

Tax returns are disliked by most people, incredibly inexperienced UK landlords. 

Register

You can earn up to £1,000 tax-free rental income annually without claiming "allowable expenses." Notify HMRC if rental income is between £1,000 and £2,500 and register for Self-Assessment for any higher income. Register by 5 October if you didn't file a tax return in the previous year. Contacting accountants in High Wycombe can simplify the process and save time and stress.

Use Software

Using third-party software can simplify and speed up filing your Self-Assessment tax return, particularly if you're a landlord. The software guides you through the relevant sections and flags errors while helping you identify tax allowances and reliefs. 

While the software may cost less than £50 per year, it can be a valuable investment compared to paying an accountant. Ensure you have all the essential financial records and details ready.

Forms

Landlords in the UK must complete a Self-Assessment tax return (SA100) and a supplementary page (SA105) to report taxable rental income and expenses. Additional pages may be necessary for reporting other taxable income sources. 

Local tax accountants High Wycombe report that tax returns can be filed directly with HMRC, but third-party filing software may offer additional benefits. Required information includes a 10-digit Unique Taxpayer Reference (UTR), National Insurance number, and employer reference.

Give Report

All sources of taxable income must be reported in the Self-Assessment tax return, including income from employment. Taxable income can come from various sources, but tax allowances and reliefs can reduce the tax owed. Each year there is a tax-free Personal Allowance of £12,570.