Common Tax Errors Landlords Make
16th August 2017
HMRC have a Let Property Campaign to try to encourage landlords who have not previously declared their taxable income and gains to come forward as soon as possible, in order to bring their tax affairs up to date. The let property campaign is aimed at individual landlords with residential property in the UK or overseas.
HMRC guidance has recently been updated and now includes 10 short case studies, highlighting common tax errors that individual landlords make. The guidance can found here – Case Study Guidance.
These are situations that HMRC come across regularly, where individuals may not realise the need to declare any income for tax purposes, or perhaps think their taxable profit is nil. The examples include: not declaring income from a property where the rental income just covers the mortgage payments (i.e. the taxpayer does not appreciate that only the interest element is deductible for tax purposes) and letting out an inherited property managed by an agent but not declaring the rental profits to HMRC.
Disclaimer - All information in this post was correct at time of writing.
