20-09-2007
Landlords should take advantage of tax allowances
News from Simply Business - provider of business insurance, invoice finance, landlord insurance and buy-to-let mortgages
Many landlords are paying too much tax through ignorance of the allowances that they are due, according to the letting agent Leaders.
There are a range of varying deductions that landlords can take advantage of, Leaders has stated, though because many new landlords have just entered the market, they may not be aware of them.
For example, an agent's letting and management fees are tax deductible, as are repair and maintenance costs.
Leaders managing director Paul Weller said: "Landlords should bear in mind that they are permitted to make certain deductions from their rental income before calculating profit, although these deductions are only applicable when the property is being let or is available for letting.
"We strongly advise landlords to keep all receipts and letting agent statements to prove income and expenditure relating to the rental of your property."
An organised filing system for records is crucial and means that one will not end up paying more tax "than is strictly necessary", added Mr Weller.
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