Set for 31 January, the self-assessment tax return deadline is looming, and landlords will need to consider a raft of changes to the rules.
While HM Revenue & Customs reports that 52 per cent of taxpayers have already completed their returns, around 5.5m still have not.
Those who must complete a tax return include people who earned more than £2,500 from renting out property in the financial year, as well as those who are limited company directors, and people who earned income from abroad.
Landlords must take into account the changes made to the tax regime that started on 6 April 2017, which includes modifications to how income tax, the wear and tear allowance, and stamp duty are handled.
Furthermore, private and individual buy-to-let landlords will have to deal with cuts to mortgage interest tax relief that take place on a progressive basis until the 2020 tax year. By April of that year, landlords will not be able to deduct any of their mortgage interest payment from rental income before paying tax.
Financial secretary to the treasury Mel Stride says: “With less than one month to go before the deadline, it is encouraging that around 52 per cent of taxpayers have already completed their self-assessment tax returns.
HMRC director general for customer services Angela MacDonald adds: “If you are completing self-assessment for the first time or are yet to start your 2017 to 2018 tax return, there is a wide range of support and guidance available on GOV.UK to help.”