Landlords – Tax Year End Planning Tips A few housekeeping tips for landlords of buy to let or holiday let properties to think about and action – if applicable – before the end of the current tax year on 5^th April 2021.

Buy-to-let Properties:

Have you experienced a drop in rental income since April 2020? If yes, make sure you let us have estimates of your buy-to-let income and expenses to say 31 December 2020 (covering the nine months from 1 April 2020) and we will see if an election to reduce tax payments on account is possible.

If you are contemplating repairs to your property(ies) consider the timing of expenditure. Incurring costs before or after 5 April 2021 will affect your tax payments.

Have a look at our Tax planning page.

If you have improved your rental property during 2020-21, please keep details as we will need those if and when you come to sell the property.

In 2023, you may need to computerise your record keeping meeting HMRC’s Making Tax Digital regulations. There are a number of cloud based software packages you could use.

Holiday Let Properties:

To retain the tax advantages you enjoy – holiday let property businesses are treated as trades – you must meet certain occupancy rules. As it is likely occupancy has dropped during 2020-21 due to lock-down periods, a review is critical.

Please contact us if you would like to discuss your options.