The new late filing penalty regime for tax payers is worrying for many landlords who have not filed returns for a number of years.
The new filing penalties have scrapped the old cap on fines that meant landlords with losses or tax due of less than £100 paid nothing or a fine equal to their tax.
Now, any late return attracts a £100 fine - and the charges mount up the longer the delay.
A tax return that is three months late costs £100 plus £10 a day for up to 90 days. At six months and 12 months, add 5% of the tax due at each milestone - £300 if the 5% penalty is less.
Deliberate late filing can increase the penalties by 70% and concealment - trying to hide a tax liability - can double it.
The typical scenario for landlords is failing to make tax returns for a number of years - but they should not worry unduly about the new penalty system.
This is a failure to notify rather than a failure to submit a tax return. Penalties are still due but not late-filing penalties, so they are less strict and cheaper.
Landlords should tell the tax man they have income from property by October 5 of the year following the receipt of the first rent.
The key point here is the rules do not mention whether the landlord makes a rental profit or loss, it’s whether any income was due.
Late notifiers can still argue that coming forward and making a clean breast of their tax affairs merits a penalty discount.
Landlords who have just failed to file tax returns when asked by HM Revenue & Customs face a different penalty treatment.
Get the current year tax return filed on time - even if the figures need amending later - then work on the earlier years to clear the backlog. Pick on clearing the years where daily penalties are already being charged.
Our friends at Glide Student, glide.co.uk know what makes students tick. In
the best tradition of successful student businesses, Glide was set up by
James Villarreal who was a student himself at the time.
With more and young people not expecting to get themselves onto the
property ladder until their 30s, it looks like more millennials are heading
down the route of renting, with many set to continue in the renting sphere
for many years.
A recent study by Accommodation for Students has revealed that two thirds
of students have more than one form of income, meaning that thousands of
students around the country are now working jobs on top of their degree
just to support themselves.
The annual AFS Student Lifestyle Survey explores key characteristics of
students’ life at university including course satisfaction, finances,
social life and eating habits. In 2018, the survey also included questions
about equal opportunities, diversity an
The first step to developing a good relationship with your student tenant
is understanding what they are looking for from the accommodation. For a
number of years, Glide have surveyed landlords and students and used these
results to enhance our understanding
Since 2013, AFS have regularly conducted the Landlord and Agent Letting
Survey trying to achieve a complete picture of how landlords and letting
agents view the student. accommodation market. In early 2018 we conducted a
further survey among our registered