But I’ve only got one little flat?
If you own one or more properties other than your main home and you rent them out, you have an obligation to declare any profits to the tax authorities.
What if I’m making a loss?
Even if you are making a loss each month, it is advisable to complete a tax return.
Because the losses can be accumulated and offset against any potential future gains.
At Steedman and Company, we have noticed a recent trend of individuals coming to us with their rental properties – sometimes portfolios – in varying states of disarray due to taking the ever popular ostrich approach to dealing with their taxes.
As well as locals and those around the UK, a simple case that crops up repeatedly is that of UK nationals living and working abroad who have kept their previous property at home in the UK and rented it out, e.g. someone who has gone to work in Australia for a year or two and has rented out their flat in Edinburgh.
Regardless of the earnings circumstances in the overseas country, a tax return must be filed with HMRC to declare the income earned from the rented flat.
HMRC have an annoying habit of issuing penalties to people who don’t submit their tax returns on time (£100 for initial late submission, leading on to £10 daily penalties after a short while) therefore, it is strongly advisable to have all the paperwork sorted out at the earliest opportunity.
If you think you fall into any of the categories above and need help completing your tax return or Land & Property accounting, give us a call on 0131 556 8595 or email us and we will take care of the full process for you.
- HMRC Investigate Fraudulent Job Retention Scheme Claims - June 17, 2020
- Worldwide Disclosure – HMRC and Living Overseas - May 21, 2019
- UK Tax Loan Scheme for Pilots Still Up in the Air - March 20, 2019
Ricky worked as an Investigator in the Inland Revenue for over 20 years before founding Steedman & Company in 1987, giving him the experience and knowledge that enabled him to help so many clients over the years.
His appearance on a Channel 4 television programme about the inside workings of Revenue and Customs was watched by 4.1m which sealed his status as one of the most highly respected tax consultants to ever work in Scotland.
Ricky led all tax investigation and COP 9 cases, using his extensive knowledge to help people reach a positive resolution to their situation.
Ricky passed away suddenly and unexpectedly in June 2022 after leaving his indelible mark on the company he founded and headed for over 35 years.