Letting a property – on the face of it, should be fairly simple, right?
You buy a property – a tenant moves in, you collect the rent each month, maybe have to make a few repairs now and again, and Bob’s your uncle, a nice steady income each month.
BUT, it’s only when you embark on the landlord journey that you realise just how complicated it can actually be, and how many more things you have to consider.
For example, did you know that your record keeping is of paramount importance? If you can’t demonstrate to HMRC that you’ve dotted the ‘I’s and crossed the ‘t’s when it comes to keeping invoices and receipts, then you could be fined up to 100% of the tax that HMRC deem they could have lost, and a possible further fine of up to £3,000 if your records don’t support the accompanying tax return.
Not looking so easy now…
But that’s just the beginning.
Tax changes and other rules and regulations mean that being a landlord is actually quite hard work, and you need to ensure you are on top of your game keeping ahead of all the requirements, so you don’t fall foul and find yourself facing a fine.
We understand, we know what we need to do our end to ensure as a landlord you are compliant, so can imagine that it must be confusing for you too.
So…ta-dah! We’ve only gone and produced a guide detailing all you need to know, just refer to this, and you should have a pretty good understanding of what you need to do, why and when.
In it, we’ll give you the lowdown on what you need to know about repairs, selling a property you have been renting out, mortgage interest relief, holiday lettings… the list goes on.
And we’ve also helpfully added some handy tips and traps – for example – did you know that…
Married couples or civil partners can transfer ownership of a property between them to create a more tax efficient outcome without liability of any Capital Gains Tax.
Letting of holiday accommodation is NOT VAT exempt and if you are VAT registered you should charge VAT.
Now all of this information is bang up to date, you won’t find anything that is as finger on the pulse. So what do you need to do to get your mitts on this leaflet?
Well, you can download it from our website here or if you are lucky enough to meet us on your networking rounds, then Ray will probably have a couple to share, failing that, you can get in touch and ask us for one, we’re happy to send one out to you!
Seriously, this guide is designed to give you a good oversight on your obligations as a landlord in terms of the records you need to keep and what you need to know for HMRC purposes, but this isn’t intended to be a be-all and end-all. We recommend you get in touch so that we can advise you on an individual basis – your circumstances may mean that one rule applies to you and another doesn’t, so to avoid getting it wrong, then give us a shout.