Filed Under UK Property Investment
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In 2008 I stressed out over the Christmas period preparing all of the paperwork needed for the looming tax return deadline. Two returns and a company return means I have a LOT of paperwork, receipts, bank statements to reconcile etc.
Last year, 2009, I was a bit more organised and stressed out about it BEFORE Christmas (getting better though!) and had the returns all done and the visit to the accountant before Christmans.
If you are like me, you will have spent at least some time over the last few months, or possibly the Christmas period, going through your paperwork for the dreaded tax return—and vowing that next year you will be more organised.
Many new landlords with perhaps just one property wonder if it’s necessary to do a tax return? The answer is “YES”, and you should do it even when you have made a loss. Any losses can be carried forward if these have been recorded with HMRC.
Being organised and having all the necessary paperwork to provide an audit trail is most important. If something is a little complicated, make a note of it separately and keep it on file as the faintest of ink is better than the best of memories (ancient Chinese saying).
The tax authorities are likely to come down hard on landlords that don’t comply with the tax rules. Always make sure you are ready for an investigation, as these often unnecessary fishing exercises by HMRC can be very time consuming, so be warned!
Remember – you need to do your Tax Return online by Sunday 31 January. If you are going to post it, make sure it reaches them by Friday 29th to be sure of not receiving a £100 late penalty fee. Better still, send it recorded or next day delivery to be sure. Make sure you visit www.hmrc.gov.uk/sa and do your 2008/09 Self Assessment Tax Return online by 31 January 2010.
For further help, including a ‘Step by Step’ guide to Self Assessment online filing and a bite-sized video, you should visit www.businesslink.gov.uk/hmrctaxhelp
Finally, start getting organised NOW for March 31st 2010 and aim to get the accounts and the returns done even earlier in 2010! I will be… will you?