Book a free 15-minute discovery call to understand your tax needs. Book Now
Find us on

Essential Tips for Every Buy-to-Let Landlord Filing 2022-23 Tax Returns

Published on:

Table of Content

Table of Content

The deadline for filing your self-assessment tax return is 31st January 2024, meaning that it is right around the corner. This also means that every buy-to-let landlord must act swiftly to avoid penalties.

Here are crucial tips for navigating the tax return process and ensuring compliance.

Understand Your Filing Obligations

Before diving into the tax return process, determine if you need to file. The property allowance allows tax-free rental income up to £1,000, but exceeding this amount requires registration for self-assessment.

Calculate Taxable Income

For individual landlords, tax rates mirror employment income bands. Ensure accurate calculations by combining rental profits with other earnings, considering applicable tax brackets.

Try Out Our Calculators!

To help with calculating your taxes, try out our wide range of calculators

Maximise Deductions

Deduct allowable expenses incurred exclusively for property letting, including agent fees, insurance, and maintenance costs. Keep meticulous records to claim deductions for minor expenses, such as phone calls and property visits.

Navigate Mortgage Interest Relief

Despite controversial changes, a buy-to-let landlord can still benefit from a 20% credit on mortgage interest payments when filing tax returns.

National Insurance Considerations

A buy-to-let landlord may need to pay National Insurance if considered business operators by HMRC. The complexity of calculations in 2022-23 requires careful consideration.

Buy-to-Let Landlords

Leverage Licensing Scheme Benefits

Deduct membership costs for local licensing schemes from your income but be aware of varying eligibility rules and expenses.

Aggregate Portfolio Profits

Whether one property or several, aggregate rental profits for a holistic view. Losses on some properties can offset profits on others, providing strategic tax planning opportunities.

Prioritise Deadlines

Filing and payment deadlines are non-negotiable. A buy-to-let landlord who misses the deadline of 31st January 2024 will incur penalties, starting with an automatic £100 charge, followed by additional daily penalties and interest on late payments.

Landlords must heed these tips to streamline their tax return process and ensure timely compliance. Act now to avoid penalties and stay on top of your financial obligations.

Share This Article

Are you ready to

Receive exclusive weekly updates directly from us!