Accountants for landlords
ZahTax Accountants is an independent firm of Chartered Certified Accountants providing Landlord tax services to the UK and overseas landlords. We have a specialist team of property tax experts who can help with all your landlord tax compliance in the UK.
Our expert team of specialist landlord tax return accountants has in-depth knowledge and tax solutions for all types of landlords such as single property landlords, HMO serviced apartments, student accommodation.
Who is a landlord for UK tax purposes?
Any individual receiving income from land and buildings, including rental income from a house, flat, or parking space, is a landlord in the UK for tax purposes. Rental income from other sources such as a caravan, a houseboat is also included. The meaning of ‘generating income from a land includes ‘exploiting an estate, interest or right in or over land as a source of rents or other receipts.
The person must report his income to the UK and may be liable for taxes on their profits depending on the profits and other income.
There are certain activities that are specifically excluded from being with a property business, such as:
- Income from farming and market gardening
- Receipts related to tied premises
- Rents from surplus business accommodation and payments for wayleaves
- Receipts from mines and quarries
- Certain receipts related to the operation of caravan sites where trade is carried on
Do I need to submit a landlord tax return with HMRC if I let a property?
You must file a tax return if:
- Your rental profits are between £2,500 to £9,999 after allowable expenses
- £10,000 or more before allowable expenses
If your rental income is below the above thresholds, the individual may request HMRC to tax the profits by adjusting the PAYE codes. If your annual gross property income is £1,000 or less from one or more properties, you won’t have to tell HMRC or declare income on a tax return.
How much tax is payable on my rental income?
The tax rate will be:
- 0% if your total income from all the sources, including rental profits, is less than your Personal allowances.
- 20% if you are a basic rate taxpayer
- 40% if you are higher rate taxpayer
- 45% If you are an additional rate taxpayer
What are the responsibilities of landlords?
As a landlord, you have certain responsibilities. You must:
- Ensure that the property you are renting is safe from health hazards
- Ensure that gas and electric equipment is safely installed and maintained
- Have energy performance certificate related to the property
- Deposit your tenant’s advance money in a government-approved scheme
- Ensure that the tenant has the right to rent the property in England
- Give your tenant a copy of the how to rent checklist when they start renting from you
In addition to the above, you have certain financial responsibilities:
- You have to pay Income tax on your rental profits (Gross rent minus property-related expenses)
- Class 2 national insurance if the work you do rent out property counts as running a business
For more details, click here Allowable Expenses
What are landlord expenses deductible?
To claim any expenses against your rental income, the criteria is that it should be incurred wholly ane exclusively for the purpose of renting out the property. This means that if the expense was not incurred, in any way at all, for the purpose of your rental business then you cannot offset it against the rental income.
Sometimes you may incur an expense that is not wholly and exclusively for the rental business, but only a proportion of it is related to property business. Where a proportion of an expense is incurred wholly and exclusively for the purpose of the rental property business, it can be claimed against the rental income.
Common rental property expenses which can claim against your rental income:
- Repairs and maintenance
- Water rates, gas and electricity
- Council tax
- Letting agent fee and management fees
- Accountants’ fee
- Ground rents and service charges
Expenses that you can’t claim against your rental income:
- The full amount of your mortgage payment – only the interest element of your mortgage payment can be offset against your rental property business
- Private telephone calls cost – only calls cost related to property business are allowable against rental income
- Personal expenses – you can’t claim personal expenses against your rental income
Please click here for more details
Individuals or entities outside the UK can invest in the UK. They can let out their properties and generate some rental income. The non-resident individuals receiving rental income in the UK are taxable in the UK. The tax liability of a non-resident can be different from a UK resident due to its domicile and residency status. Also, the double taxation treaties between the countries can impact the tax liability of non-resident landlords. Please read our non-resident landlord page for more information.
Why choose ZahTax accountants for your landlord self-assessment tax return?
- Qualified Chartered Certified Accountants
- HMRC Authorised Agent
- Specialist team for preparation taxation
- HMRC Authorisation accounting software for the preparation and submission of your tax returns
- GDPR compliant
How much would be the cost?
We have mainly two packages related to tax return compliance. Please get in touch with our specialist landlord tax return accountants team and provide us with the following information on our Contact Us page, and we will get back to you as soon as possible.
- Number of UK residential properties
- Are they joint or in sole ownership
- Estimated gross monthly rent from each property
- When did you start renting the properties
How our Landlord tax services can help you?
Our specialist landlord tax return accountants team at Zahtax can provide you with the following landlord tax services:
- Registration for self-assessment as a landlord
- Preparation of your property rental accounts using HMRC authorised software
- Calculation of your taxable profits and the tax liability due
- Advice on claiming all the legitimate expenses
- Preparing your landlord tax return using HMRC authorised software
- Dealing with all the correspondence from HMRC