Posted on 17th December 2018
If you’re letting out any property, you must declare the income to HMRC and the deadline for your tax return is January 31st.
Whether you own multiple rental properties or just the one, it’s essential to make sure that your tax affairs are accurate and up-to-date.
People who are not full-time landlords still need to declare any income from lettings to HMRC and pay tax on those earnings if required. Those who are renting out one property – perhaps following an inheritance, a combining of households or the purchase of a holiday home – while also working as a PAYE employee, or in self-employment in a different sector, may not realise that they need to fill out a tax return every year for this income.
HMRC has powers to discover any lettings revenue you may be receiving, by requiring letting agents to disclose that information. The Let Property Campaign is an ongoing drive that aims to get private landlords up-to-date on their tax affairs and to settle any tax owed on their rental property income. If you’re a landlord who is letting out residential property, in the UK or abroad, you need to tell HMRC about any undisclosed income as soon as possible.
Don’t forget that this applies to holiday lets, at home and overseas, not just long-term residential lettings. So, even if you’re only renting out a property for part of the year, make sure you’ve clarified your tax position.
HMRC can now track financial information in more than 100 countries. The scheme known as the Common Reporting Standard now enables HMRC to exchange financial data with 53 more countries than had previously been the case, extending its reach to Switzerland, Canada, Australia, Hong Kong, Singapore, United Arab Emirates, Panama and much of the Caribbean.
We can help by completing your tax return, on time and liaising with HMRC on your behalf. Contact our friendly, professional team today to find out how JNR Accounting can be the key to your peace of mind.