Anyone who works for themselves needs to submit a self-assessment tax return. This applies even if you are also employed elsewhere.
This can include income from property rental. Also, if any badges of trade can be confirmed, any items you may sell regularly, keep only for a short period of time and sell or work performed on goods to make them more marketable could indicate towards trading and would class as being self employed.
You could also be required to fill in a self-assessment if you or your partner earn more than £50,000 and one of you claimed child benefit.
You need to register by 5th October, then you would need to create a government gateway account.
You would be enrolled for the self-assessment online service and await a letter with your Unique Tax Payer Reference (UTR).
You'll also get a letter within 10 days with your activation code allowing you to log in to your account online.
There is a £100 fine if you miss the deadline which increases after 3 months, plus there are also penalties for missing payments too.
As a landlord you may not see yourself as self-employed or a business owner, but HMRC takes a view that if you are renting out properties and making profit, then you are. This means you'll have to fill in a self-assessment tax return.
Taxes landlords need to keep in mind regarding renting is income tax and national insurance.
If a property is rented out and you have earned between £2500 and £9,999 after allowable expenses or £10,000 or more before allowable expenses, then this would need to be included through self-assessment.
Capital purchases (not rented) such as plant and machinery, fixtures and fittings, equipment and vehicles are provided with tax relief through capital allowances. Items not deemed to be capital include land, buildings and structures.
ALLOWABLE AND DISALLOWABLE EXPENSES
Below are a few examples.
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