Why choose us for your Annual return?
- Licensed and regulated by AAT
- Landlord Self-assessment tax
- Fees agreed before engagement begins so no surprises
- Excellent and value added services to clients
- Low overheard so cost savings are passed on to clients
- Remote services
HMRC £1,000 Annual Tax Allowance for Property Income
Since 6 April 2017 HMRC have launched a new allowance to help make the tax system easier – a £1,000 annual tax allowance for property. But as with most tax rules, its important to understand how they work and what makes you eligible to claim for them.
How to Claim the HMRC £1,000 Property Income Allowance
If you do not currently submit a tax return then you don’t need to do anything to claim for the property income allowance but you must keep records of your income and expenses to evidence that you are entitled, should HMRC ever ask. Consider setting up a spreadsheet and make sure you file your receipts. You should also keep an eye on your income because once it goes above the trading allowance you will need to register for Self Assessment by 5 October.
How to Register as a Landlord With HMRC
You can register as a Landlord on the HMRC website. If you have never registered before then you can do this on the HMRC website here. You must register by the 5th October following the tax year that you started receiving rent. A tax year runs from 6 April to 5 April. For example, say you begun receiving rental income on 31 January 2017, then you should let HMRC know about this by 5 October 2017 so you submit a self assessment tax return and pay tax on these earnings by 31 January 2018.