Yes – when you have rental income from properties in the UK or abroad remember that you need to declare the income on your self-assessment, if you are a UK resident. If you are not a UK resident then you must include your UK sourced rental income in a UK self-assessment return.
This includes:
- Rental property
- Second property
- Portfolio of properties
If you are a landlord receiving rental property income, HMRC may amend your tax code. HMRC do this as a way of collecting the tax due on the rental property through your PAYE earnings i.e., earnings in a staff role. This does not remove your requirement to complete a Self-Assessment, however.
If you do not wish for the tax to be deducted in this way, you are able to call HMRC on 0300 200 33 00 and advise them that you would prefer to pay the tax annually following the preparation of your Self-Assessment.
What records do I need to keep?
It is important to keep a record of the following relating to the properties:
- All rents received in the relevant tax-year
- Any outgoings or expenses incurred in the letting of the property/properties.
NOTE: If your property is jointly owned, then the income you receive will be split equally between each of the owners.