HMRC is urging landlords not to miss the deadline for submission of online tax returns. A hefty fine will be dished out if you don’t get your return in by January 31, 2023.
Completing a tax return is relatively easy. You will need your National Insurance number, details of untaxed income including copies of bank statements, receipts and invoices, your unique taxpayer reference (UTR), details from employment income, records of your self-employed expenses and details of eligible tax reliefs such as charity contributions or pensions.
Also remember to keep your records in case HMRC wants to check your tax return.
The Revenue is also urging buy-to-let landlords to declare their full rental income. It has been sending out “nudge” letters which should not be ignored.
Sheldon Bosley Knight’s business development manager Nik Kyriacou said: “HMRC can calculate expected rental income quite easily and this needs to be included in any tax return.
“HMRC tends to send these types of letters out if it has been sent information suggesting the landlord reviews their tax position and will generally include a simple certificate of the tax position which needs to be completed and returned.
“We would encourage all landlords to review their tax position if they get one of these letters and if they are unsure we would ask they get in touch with us so we can advise them if any disclosures are needed.
“Landlords should definitely not ignore these letters as if HMRC decides tax is due it could lead to an investigation and possibly a criminal prosecution.”