To ensure you make business decisions based on accurate information, let Fawcetts be your bookkeepers. We will remove the administrative burden of record-keeping, and eliminate the worry and risk of error that can come with doing your own accounting.
Your company’s books and financial statements are your overview of the health of your finances, as well as an early warning system that lets you know when and why the business may be on a rocky road. Financial records also provide the basis for many decisions made by third parties such as banks, landlords, potential investors, and trade creditors as well as taxing authorities and other governing bodies. Given the importance of financial records you may want to consider outsourcing this function to reduce the risk of errors and potentially save costs. We offer a full outsource service click here for more details.
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If you have lived abroad for six or months or more in a year, you are classed as a “non-resident landlord”, and the income you receive from renting out your home whilst abroad is taxable in the UK.
This needs to be declared to HM Revenue & Customs (HMRC), but you do not necessarily need to file a tax return.
Non-resident landlords can choose to be taxed in one of two ways:
- Through self-assessment (SA). SA tax returns must be filed by the 31 January deadline if you do it online, or by 31 October if you choose to do it by paper. If you haven’t registered for SA, you must do so by 5 October.
- At source, deducted by your letting agent or tenant.
If you choose to get your rent in full and pay tax via SA, you’ll need to fill in a form NRL1i, found here. If previous tax returns are outstanding, or if tax is owed, your application may not get approved.
Even if you are a non-resident landlord, your £11,500 personal tax allowance still applies.
You might also need to pay Capital Gains Tax if you make a gain when you sell residential property in the UK.