NOPS offer a wealth of experience when it comes to considering prudent income tax strategies to maximise the profitability of your property portfolio. Obviously, we always recommend that you consult your own specialist tax accountant, however, the following guidance is provided for your convenience. NOPS can also refer you to a reputable and experienced tax accountant should you require this service.
As is the case with income and interest on savings, your income from property letting is also subject to tax. Fortunately, the majority of costs arising from your lettings activity can be deducted allowing you to significantly reduce your tax liability.
These deductible items include:
Of course to take advantage of these deductions you need to be meticulous about keeping receipts as proof of expenditure, noting that in the case of joint ownership, the proportion of rental income equals the proportion of your ownership of the property.
A significant proportion of NOPS Clients are non-resident, it is important that, if you fall into this category, you have the right guidance. Speak to our Managing Director Debbie Swailes who will be able to guide you in this crucial aspect of portfolio management.
HMRC define non-residents as:
Many NOPS non-resident Landlords do, therefore, complete forms NRL 1 for individuals, NRL 2 for companies and NRL3 for trustees for the purpose of gaining exemption from HMRC. In these cases we can pay the Landlord all the rent directly without deducting the tax. For more information please contact our Managing Director Debbie Swailes. NOPS provide Non-Resident Landlord clients a statement by 5th July which itemises rent paid together with tax deducted for the previous financial tax year ending 31st March.
We do advise that you seek professional advice from your own accountant regarding your personal tax affairs.
To discuss any of these issue, in the first instance, please call Debbie Swailes on 01865 311745.