It’s recently been in the press that too many buy-to-let landlords are failing to claim back all the costs associated with renting out a property when they submit their tax returns.
New research by Paragon shows that a failure to become fully tax-efficient is having a huge impact on landlords’ property investments as they are not maximising their return on the cash used to set up their buy-to-let business.
Landlords can claim back costs incurred through letting property against their income. Many are failing to do this. Mortgage interest can be a major cost but the Paragon research shows 13% are not claiming for this.
Other costs that can be claimed back include management or letting fees when working out tax bills as well as costs to advertise for tenants.
Nigel Terrington, from Paragon, said: “Good tax planning is key. How landlords implement, manage and run their tax affairs could have a major impact on landlords’ property investments and their overall performance.
“Tax is a complex area and we are confident that our Tax Guide will help landlords obtain a better grasp of tax matters. It’s vital that landlords take advantage of the allowances open to them to maximise their return on investment.”
“I’m sure when landlords take all of these costs into consideration it could generate a significant saving on their tax bill.”
Don’t let the taxman take more than they have to. Make sure you claim everything back that you’re entitled to.