As the tax year draws to a close, landlords and buy-to-let investors should take some time to review their financial situation and prepare for key deadlines. While tax-related matters are best handled by professional tax advisors, it’s still beneficial to understand your obligations and stay informed about changes that may affect your investments.
At Novus Financial Solutions, we’re experts in mortgages and property finance, and while we don’t offer tax advice, we can support landlords in navigating the financial aspects of property ownership. Here, we’ll provide an overview of relevant tax year-end considerations and highlight how we can assist you from a mortgage perspective.
Key Tax Considerations for Landlords
Important Deadlines
The current tax year ends on 5th April 2025, and landlords who need to file a self-assessment tax return for the 2023/24 year must do so by 31st January 2025 (if filing online). Additionally, 31st January 2025 is the deadline for payments on account for the 2022/23 tax year. Ensuring you meet these deadlines can help you avoid fines or penalties.
While these deadlines are essential to keep in mind, it’s vital to consult a qualified tax adviser to ensure full compliance and accurate reporting.
Declaring Rental Income
Landlords are legally required to declare rental income on their self-assessment tax return. This includes all income earned from renting out property, minus allowable expenses. It’s important to maintain detailed records of your rental income and expenses throughout the year, as this will simplify the process when it comes time to file your return.
Recent Tax Developments
There have been some changes in recent years to taxation rules that may impact landlords. For example, mortgage interest tax relief has been replaced with a 20% tax credit. Additionally, capital gains tax (CGT) on property sales must now be reported and paid within 60 days of the sale completion.
These changes highlight the importance of staying informed. However, detailed advice on how these rules apply to your circumstances should always be sought from a tax professional.
What Novus Financial Solutions Can Do
While tax filing and compliance are outside our remit, at Novus Financial Solutions, we specialise in helping landlords with the mortgage-related aspects of their property investments. Here’s how we can support you during this important time of year:
- Mortgage Reviews: The end of the tax year is a great time to reassess your portfolio. We can help you explore refinancing opportunities or switching to more favourable mortgage products that could reduce your costs or raise capital for future investments.
- Expanding Your Portfolio: If you’re planning on adding another property to your portfolio, we can guide you through mortgage options that suit your borrowing needs and budget.
- Advice on Financing Options: If you’re managing existing buy-to-let mortgages or considering changes to your investment strategy, we’ll provide clear, straightforward advice tailored to your goals.
Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
