Landlords are required to notify HM Revenue and Customs (HMRC) if they are letting a property and are obliged to pay tax at their usual rate on any income or profit made from it
Call MSR Group, 0208 514 2678 for more details. If you let out residential property, you will have to keep records of rent received and your expenses to work out the profit you’ll pay tax on. You work out your taxable profit by taking your expenses and certain allowances away from your rental income. Online self-assessment must be completed by 31st January for the previous tax year.
1) Even if you do not receive a self-assessment Tax Return automatically the responsibility is on you to notify HM Revenue and Customs of a Tax liability derived from Property Income.
2) Please keep all relevant financial information for seven years as HM Revenue and Customs may choose to audit your property Tax affairs at any time.
3) If a property is jointly owned the figures will need to be divided between the legal owners as HM Revenues and Customs assess your income individually.
4) As well as the expenditure included above you may have other deductible expenses relating to your property that could be used to reduce your income tax liability.
Read what kind of expenses you can deducted and other information.