New landlords warned to register for self-assessment: Don't miss the 5th October deadline!
30th September 2015
Any landlord that has received a rental income (not profit made) of more than £2,500 in the tax year to 5 April 2015 must have registered with HMRC.
Failure to register by 5th October 2015 and submit a tax return by 31 January 2016 (31 October 2016 for a paper tax return) will result in a fine by HMRC which starts at £100 for being one day late and escalates if three months or more late.
Rental income of less than £2,500 can be dealt with by the PAYE system for landlords who are working, or in receipt of a pension.
Landlords registered by 5th October 2015 need to submit their tax return for submission of the 2014-15 by 31st January 2016 (31 October 2015 for a paper tax return) or three months from the date on which HMRC issue the notice to submit a tax return.
Registration for self-assessment is best undertaken by submission of the HMRC form SA1 - https://online.hmrc.gov.uk/shortforms/form/SA1. Submission of electronic tax returns can be done by using HMRC’s own online system, third party software or by using a professional adviser.
Tom Lacey, chartered tax adviser, comments: “Many new landlords may not be aware that they must register for self-assessment and failure to do so can create significant financial penalties. Online registration is quite a simple process and for anyone who needs more help you should speak to an accountant or tax adviser”.