How you are taxed on the rent you receive from your single or portfolio of properties depends on the type of letting.
Even if you are letting out part of your own home, you may have a tax to pay.
If you are letting out property abroad but are resident in the UK for tax, you may have tax to pay.
If you own rental property jointly with a partner, you will both be responsible for reporting the income to HM Revenue & Customs.
If you let property furnished however, we can offset the tax amount against costs from your wear and tear allowance.
TaxPenny make sure you comply with all the tax laws but make sure that you are maximising all your tax benefits and allowances.
TaxPenny are here to help you to complete your rental accounts which are needed in order to finalise your Tax Return.
We have the necessary expertise to advise you on the type of expenses which are permissible for deduction against the rents received.
Additionally we will assist you with systems to keep your records in order.
Please note that HM Revenue & Customs are tightening controls on investment properties and it is the taxpayers responsibility to notify the tax authority of this. Failure to do so could lead to penalties.
Please provide us with the following:
1. Rents received on all properties let out. You'll need to keep a note of:
2. Details of expenses related to the letting of the property. Your records should include all your costs of letting or managing your property. We will advise you on which of the expenses are allowable and notify you of any expenses which you may not have considered.
3. Details of 'capital' costs associated with the purchase of the rental property, furnishings and improvements.