If you haven’t already started thinking about tax, now is definitely the time to do so. Surprisingly I still come across landlords who are unaware that rental income needs to be declared and, in most cases, paid tax on. All rental income must be declared by law to the Inland Revenue.

There are elements of running a rental property that can be off-set against tax, but landlords of furnished properties might feel the pinch this year as the 10% wear and tear allowance will be ending this April. 

The end of the tax year is 5th April 2017, so although still a couple of weeks away, it is better to have an idea of how your rental year has been now so you can make changes if necessary; for instance, if you know you need to replace an item of furniture, look at doing so before 5th April to take advantage of this years’ allowances.

This new tax year will see the start of landlords being unable to offset part of the interest of their buy to let mortgages. If you are unsure of how these changes will affect your tax liability, speak to your accountant who should be able to advise. Not got an accountant? Give Swansea-based Morgan Hemp a call. 

If you want some free advice on how to maximise the rental potential of your property, give us a call on 01792 430100 today! 

Related: Landlord wear and tear tax changes