A landlord is responsible for maintaining their properties as well as ensuring they meet legal and safety requirements. The landlord will also collect rent from the tenants. Landlords can own various types of properties, including houses or apartments. They may rent out the property to tenants on a short-term or long-term basis, depending on the lease agreement organised and put in place. As a landlord, you can benefit from a range of different tax savings.

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Make sure you claim all allowable expenses

Make sure to claim all allowable expenses against your rental income, such as mortgage interest, property maintenance costs, letting agent fees, insurance premiums, and repairs. These expenses can be deducted from your rental income, reducing your taxable profit. There is plenty of information available online in relation to what you can claim as a landlord.

Use the annual tax-free allowance

Take advantage of the annual tax-free allowance for rental income. Landlords are able to earn up to their personal allowance, completely tax-free. Spouses and civil partners can also use their allowances if they jointly own the property.

Set up a limited company for your rental properties

Depending on your circumstances, it might be beneficial to set up a limited company to deal with your many rental properties. This can offer certain tax advantages. However, do seek professional advice as there are costs and implications associated with incorporation.

You may also require further professional advice on different aspects of renting to tenants. A declaration of Trust, a legal document confirming the terms on which a property is held on trust, is important because it protects your investment in a property if events do not go as planned. For legal advice, there are professionals in the area on hand to advise, including https://www.parachutelaw.co.uk/deed-of-trust.

Keep accurate records of any income earned

Maintain detailed records of all income and expenses related to your rental properties. This will ensure you can claim all allowable deductions and accurately report your rental income to HM Revenue & Customs (HMRC). The Times asks if being a landlord is still likely to be a profitable endeavour after any tax implications are taken into account.

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Seek professional advice if you are a landlord

Consider working with an advisor or accountant specialising in property taxes. They can provide advice to help you maximise your tax savings while remaining compliant with tax laws and regulations.

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