Tax return deadlines are approaching-don’t face penalties!

Doesn’t time fly when your enjoying rental yields? Well, hopefully that’s the case for you and your buy-to-let investment!

However, it is fast approaching the time when you need to think about filling in your tax returns.

Tax return deadlines

Should you be looking to complete your tax returns by paper, then the deadline is 31st October 2016. The deadline for online completions is the 31st January 2017.

Be warned-if you are a new buy-to-let landlord, you must ensure you register in the self-assessment system by the 5th October, following the end of the tax year for which you need to send in a return. If this is not done by the deadline, then penalties will be charged.

Carole Charge, technical and compliance director at Leaders, noted: ‘it is vital for landlords to keep their tax position up-to-date, HMRC takes this very seriously and there are penalties for late returns.’[1]

‘Landlords should also be aware of all the tax allowances available to them to ensure that they don’t pay any more tax than is absolutely necessary. We have put together a summary of some of the key points all landlords should be aware of, but, for advice relating to your specific circumstances you should speak to an accountant or specialist tax consultant,’ she added.[1]

Key Deadlines

A breakdown of some key dates for your diary:

  • Register for self-assessment-on or before 5th October 2016
  • Paper tax returns-no later than 31st October 2016
  • Online tax returns-no later than 31st January 2017
  • Pay tax you owe no later than 31st January
Tax return deadlines are approaching-don't face penalties!

Tax return deadlines are approaching-don’t face penalties!

Penalties

There will be an automatic penalty of £100 should you miss your respective tax deadline. Once you are 3 months late with payments, a charge of £10 per day will apply.

Allowances

Landlords could receive relief from tax payments on a number of expenses, including:

  • Letting agents’ fees
  • Utility Bills
  • Council Tax
  • Accountant fees
  • Buildings and contents insurance

Exclusions

Not all residential landlords are permitted to file a tax return. Should your rental income be less than £2,500 (net of expenses) you could find yourself exempt. However, you are still required to disclose the income that you have generated.

[1] Leaders Press Release, Tom Witham, 28.09.16

©2017 Just Landlords

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