Owning and renting a property can be a bit of a minefield.
We would always recommend that you take good legal advice before you take the plunge. But once you have decided renting out property is for you we are very happy to help you rent your property in the most tax-efficient way. We prepare rental accounts for many clients who rent properties out and include details on the Self Assessment tax return. We can help you too.
Make sure you keep details of:
- the dates when you let out your property
- all the rent you get
- any other income received eg from repairs you make
- relevant receipts, invoices and bank statements
- allowable expenses you pay to run your property (eg paying for gardening)
There are different tax rules for residential properties, furnished holiday lettings and commercial properties and we can make sure you understand these and are following the correct regulations. You will need to pay tax on the profit you make from renting out the property but the profit comes after deductions for ‘allowable expenses’.
These might include:
- letting agents’ fees
- buildings and contents insurance
- interest on property loans
- maintenance and repairs to the property (but not improvements)
- utility bills, like gas, water and electricity
- Council Tax