new landlord what about tax

[will4u69]

I am new to this and have just started letting a house in july , I am unsure what i need to be doing about tax and book keeping etc please could someone point me in the right direction of what to do and what i should be doing on a monthly basis.

thanks

[Matt Churchill]

Best advice is probably to talk to an accountant in your area. Basically, you need to keep a record of all income and expenditure directly related to the property. This will then allow you to assess how much money you have made and then how much tax you need to pay. You should be completing a self assessment tax form as well.

That's the simple answer, but like I said talking to an accountant would be a good idea, as there will no doubt be items you think you can claim for which you can't and vice versa.

[plym77]

Hi Will

I am an accountant and tax expert and should you require assistance with your tax returns, please feel free to email me on sherena.glanton@horwath.co.uk

Broadly, you need to inform HM Revenue and Customs by 6 October 2007 of your new source.

You will be required to prepare a self assessment tax return - first year required will be tax year ended 5 April 2007, and will cover your rental business for start of business to 5 April 2007, together with any other income earned in the tax year - ie. employment income, bank interest received etc.

Your tax return must be submitted by 31 January each year. Your 2007 one by 31/1/08. Failure could result in a £100 fine.

Any tax due must be paid by 31/1/08, interest will start to accrue after this date. Tax outstanding at 28/2/08 would result in a 5 % surcharge. There are further surcharges and penalties, but I would hope you would have filed and paid by then.

In addition to the outstanding tax, you may also be subject to payments on account towards the following year, depending on the size of the tax bill and other factors (no point going into this)

If you need to know the type of expenses you can deduct, see the following link for H M Revenue and Customs website,

http://www.hmrc.gov.uk/manuals/pimmanual/index.htm

I would suggest that you do employ an accountant, and I would be happy to give you a quote if you would like me to. But if you choose to do it yourself, then I wish you the very best of luck with your new venture and hope the above information has been helpful

regards

Sherena