We use cookies to make your experience of our website better. Please read our cookies policy to find out more. If you continue to use our site, we will assume that you consent to our use of cookies.
Cunninghame Properties - Property Management & Residential Letting Agents On Facebook Cunninghame Properties - Property Management & Residential Letting Agents On Twitter

01294 461911

 

HMRC mulling 'easier' tax regime for small-scale buy to let owners

Tuesday, 16th August, 2016

HM Revenue & Customs has launched a 12 week consultation on a proposal which it claims simplifies the tax demands levied on small-scale buy to let investors.

If the proposal is agreed, landlords with annual business income - that is, rent - below £10,000 will not be required to keep their business records digitally or provide quarterly updates to HMRC but they will still be able to use the so-called 'optional cash basis'.

This system is likely to be introduced in the Finance Bill 2017, for implementation in 2018 or later.

As part of a wide ranging digitilisation programme called Making Tax Digital, HMRC had been expecting most businesses, including landlords, to use specialist software or apps to keep their business records, and to submit a summary of these quarterly.

The cash basis option will only be available to the simplest property business, such as individuals and partnerships where all partners are individuals.

However, a statement from HMRC says: "The option to use the cash basis will make budgeting for tax easier for landlords allowing them to better manage cashflows".

Under the cash basis, landlords would only need to declare income on rent actually received; landlords using the digital quarterly accounting alternative would have to include the income tenants should have paid for that year - even if, for whatever reason, that rent had not been paid.





SEARCH

Our Accreditations
True