Many landlords 'paying too much tax'

A group of lettings experts, The Landlord Syndicate, has warned that landlords could be clobbered with a higher tax bill than anticipated.

One member, Amer Siddiq, managing director of Tax Insider, said: “Over the last few years, the buy-to-let market has grown substantially, and with it, many landlords have been able to profit from the ever-increasing rental income and record low interest rates.

“However, in a large percentage of cases, how much tax a landlord has to pay as a result of the size of their portfolio and having fewer outgoings to offset against tax, will be crucial to how profitable their investment really is.”

He said too many landlords pay an unnecessarily high tax bill due to poor record-keeping, missing receipts, and forgetting to claim expenses.

He said: “For example, most landlords are aware they can offset tax against their mortgage interest, rates and repairs. However, many fail to claim other costs such as travel to and from the property, advertising costs and phone calls, all of which may seem insignificant, but can certainly add up over the year.”
 
A free factsheet on landlord taxes can be found at https://www.landlordsyndicate.com/