Self Assessment Tax Returns – Help and support for Landlords

August 26, 2019 - 4 minutes read

Self Assessment Tax Returns – Help and support for Landlords

As a landlord, you might not think of yourself as self-employed or a small business owner. HMRC, on the other hand, does, and if you’re making money from renting out a property, you’ll need to fill in a Self Assessment tax return.

The Self Assessment process might seem daunting at first, especially given how many changes to tax are announced every year. That’s why we created this guide to help you understand the different parts of Self Assessment and work out what you need to do.

What tax do landlords need to pay?

As a landlord, there are a number of different types of tax you’ll have to keep in mind. Legislation is constantly shifting, but some of the main ones to consider are:

Income Tax
National Insurance contributions (NICs)
Stamp Duty Land Tax
Capital Gains Tax
Stamp Duty Land Tax and Capital Gains Tax only need to be paid when buying or selling a property – you can read more about them in our guide to rental property tax.

Income Tax and NICs are currently paid annually and are based on the income you make from renting out your properties. To pay your Income Tax and NICs you need to register for Self Assessment and complete a tax return each year.

Tax return deadlines

The deadline for submitting your tax return for each financial year is usually 31 October for paper tax returns and 31 January for online tax returns. So for the 2019-20 tax year, the deadline for paper tax returns in 31 October 2020 and the deadline for online tax returns is 31 January 2021.

Once you’ve filed your tax return, you then need to pay the tax you owe. The deadline is usually the same as the final date for online Self Assessment tax returns, so the deadline for paying your 2019/20 tax is 31 January 2021.

Filling in your Self Assessment tax return

To fill in your tax return you’ll need information about all the income you’ve received throughout the tax year, as well as information about expenses you want to deduct.

It’s important to keep a record of all your income and expenses so that you can easily find it when you come to fill in your return.

You’ll also need your UTR (unique taxpayer reference) number, which is assigned to you when you register for Self Assessment. It’s usually printed on communications from HMRC regarding your tax return, but keep a note of it somewhere safe so you can easily find it when the time comes.

What are allowable expenses for landlords?

Though there have been some changes in recent years, there are still a number of expenses landlords are allowed to deduct from the cost of their tax bill. Some of the main ones are:

Property repair and maintenance costs
Replacement of domestic items (from April 2016)
Accounting fees
Insurance
Running costs

Depending on what costs your tenants take on board, you can also claim for:

Letting agent fees
Light and heating costs
Service charges
Ground rent
Cleaning costs
Advertising costs