The 31 January Self-Assessment tax return deadline is fast approaching. If you earn rental income above £1,000 in a tax year, you must submit a return to HMRC. Missing the deadline can lead to penalties, so now is the time to get organised.
What to include
Your return should cover all your property rental income and allowable expenses. These include repairs and maintenance, letting agent fees, insurance, and a portion of mortgage interest (restricted to basic rate relief). It’s important to keep receipts and records for at least six years to stay compliant.
Avoid common mistakes
Many landlords slip up by misreporting income, claiming for improvements instead of repairs, or forgetting to include smaller costs like advertising or legal fees. Filing early gives you time to correct errors and avoid last-minute stress.
Looking ahead: how to reduce your tax bill
Once your return is complete, take a moment to plan for the year ahead. There are strategies that could help you reduce your tax liability in future:
• Portfolio Restructuring: Moving properties into a limited company can offer tax advantages, especially for higher-rate taxpayers.
• Remortgaging: Reviewing your mortgage could free up cash flow and improve profitability.
• Tax-Efficient Planning: Consider timing repairs, using allowable reliefs, and exploring professional advice to optimise your position.
We can guide you through buy-to-let mortgage advice, remortgage options, and help you assess whether a limited company structure is right for you.
Staying on top of your tax obligations is essential, but smart planning can make a big difference to your bottom line. If you’d like to explore ways to restructure your portfolio or review your mortgage strategy, contact us on 08000 38 37 36 today to speak with a Buy-to-Let mortgage expert or click to book your free appointment.
This is for information only. Products and rates vary depending on your circumstances, lender criteria and products available at the time. Tax rules depend on your personal circumstances and may change. We recommend that you take independent tax advice before making these decisions.
