It’s Tuesday!
The perfect day to talk Tax.
Read this week’s short Tax snippet for doctors, dentists & landlords, to help you save money and get more organised with your tax affairs. It’s just to give you a flavour – in fact, you can read it whilst you drink your morning coffee!
This article does not constitute advice.
Professional advice should be taken prior to acting on any part of it.
Reporting your Rental Property Income & Expenses
When your rental property starts to earn a profit, you are required, by law, to file a Tax Return detailing the income, expenses and subsequent profit, for which tax will be applied.
Depending on your other tax affairs will depend if tax is actually due or not. Typically for a doctor or dentist any tax liability will be collected along with the January tax payment, through self-assessment.
There are occasions though where the tax can be collected through your PAYE tax code if you choose.
Reporting Losses to offset against future Profits
What many property owners don’t realise it that if rental properties make losses, it is worthwhile reporting these on the Tax Return too.
This is because losses in one period can be offset against profits in a later period, therefore reducing your overall tax liabilities across several years.