The income from property lettings is taxable. Some deductions and allowances may be set off against the rental income, such as mortgage interest, and cost of repairs. Nigel Davis Property Services is not qualified to advise on individual tax matters, and we therefore recommend you to contact a qualified Accountant or Tax adviser.
At the end of the financial year the Inland Revenue requires us to submit a return to them with details of all the rent we have collected on your behalf. By law we have to comply. We will forward a copy of the return to you so that you will know what figures have been declared. In addition, legislation has also made it compulsory for all landlords to comply with the Tenancy Deposit Protection Scheme. This means that the deposit for each property has to be logged in accordance with the regulations, and must be registered with the Tenancy Deposit Scheme. We will ensure that the deposit we receive for each of your properties is properly registered on your behalf. A small charge of £25 plus V.A.T. is made for these annual services, which covers both the Inland Revenue return, and the Tenancy Deposit Scheme.
If the Landlord is not resident in this country we are required by the Inland Revenue to deduct basic rate tax from the net rental income, and remit this to them quarterly. Any tax overpaid is eligible for reclamation at the end of the tax year. Landlords may apply to the Inland Revenue to allow us to make payments gross, and we are happy to do this on receipt of a letter from the Inland Revenue confirming that this is in order.