The short version: A landlord is someone who owns property and rents it out to tenants. You collect rent, but you also have legal responsibilities around safety, maintenance, and repairs.
What are your responsibilities?
Gas safety checks every year by a Gas Safe registered engineer. Electrical safety inspections. Smoke alarms on every floor and carbon monoxide alarms where needed. Keeping the property in good repair. Making sure tenants have escape routes in case of fire.
There’s quite a bit of regulation, and getting it wrong can mean fines or worse.
How is rental income taxed?
Rental profit counts as taxable income. That’s your rent minus allowable expenses like repairs, letting agent fees, insurance, and some mortgage interest. You declare it on a Self Assessment tax return.
If your rental income is small (under the property allowance), you might not need to declare it. But most landlords with mortgaged properties will need to file.
What about mortgage interest?
The rules changed a few years ago. You can no longer deduct mortgage interest directly from your rental income. Instead, you get a tax credit at the basic rate. This hit higher rate taxpayers hardest.
Renting out property and not sure what you need to declare? Let us help you get your rental accounts sorted.
