Tax Year Deadline is 31st January 2013
However, as anyone who has ever completed a self assessment tax return will tell you, the evaluation of personal income for the tax year and the amount of time needed to complete a self-assessment form, either on paper or online can be very considerable.
When managing a single property or declaring a growing rental property portfolio, it can be hard work to set aside the time needed to tick all the right boxes.
However, the 31st January is the deadline for all self-assessment returns for the year 2011-2012 to be filed and, if you’re a landlord who utilises the self-assessment facility, the time has come to get busy with your tax return.
Avoid HMRC Fines – Spend A Little Time Preparing Your Figures
Failure to file your self assessment tax return before the 31st January 2013 will incur mandatory fines and the HMRC penalty regime has become considerably stricter over recent years.
A penalty is immediately issued for failure to hand in the return on time and, if you’re especially late, you’ll find yourself subjected to tax-geared penalties.
That could result in fines adding up to many thousand pounds. Spending an hour or so sorting things out to avoid these penalties could save more than you think!
Making Proper Deductions
The first rule of prudent tax is to ensure that you’re declaring everything, but don’t be too shy about making the appropriate deductions. Landlord insurance, certain repairs, damages and bank interest are all costs you have to suffer and your taxable profit should include these deductions.
If you’re struggling to complete your return, the best thing to do is to contact an independent financial advisor (IFA) or property tax specialist.
There are plenty of specialists that will be able to help you despite the short timeframe. However, you may well be paying higher fees than you would have otherwise expected, but it is worth remembering that all the best tax consultants will be flat out at this time of year!
Paying tax in the UK is inevitable so landlords should resign themselves to making the best of it.
If you have any pressing priorities this week, make completing your HMRC self assessment tax return one of the most important, time and the tax man waits for no-one!