You are a landlord if you rent out your property. You may have to pay income tax on your rental profits if your total income exceeds your personal allowances. Your rental profits will be taxed at 20%, 40% and 45% depending on which tax band the income falls into.

You must pay tax on your rental profits you make in each tax year. A tax year in the UK runs from 6 April to the following 5 April.

There are different tax rules for calculating taxable rental profits for:

  • Furnished/Unfurnished Residential properties
  • Furnished holiday lettings (FHLs)
  • Commercial properties
  • Where you let a room or rooms in your own home

At Martax, we can help you:

  • Prepare your annual rental accounts for the properties whether these are residential let, FHLs or commercial properties
  • Calculate your taxable position
  • Advise on claiming all the legitimate expenses to optimize tax savings
  • Complete your tax return using HMRC approved software
  • Advise you on the tax liability to be payable to HMRC and when they are due

If you need any help or advice in relation to your let properties, please get in touch.