First time landlord tax return confusion?

First time landlord tax return confusion?

7:34 AM, 4th January 2020, About 4 years ago 5

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I got permission to let my property in 2018 so that I could do some travelling. I’ve now got the not so fun part of sorting out the taxes for 18/19.

First tenant: I let the property July 2018 until Feb 2019. This was without an agent and I received monthly payments.

Second tenant: Let from Mid March 2019 until March 2020 (I’m moving back in) This payment was paid in full, minus the agent,s fully managed fees, 21/03/19.

So, my question is, how do I approach this? I barely made a profit from the second tenant once all of my house-related fees are deducted, but obviously the income falls right at the end of the financial tax year.

I’m not sure if it makes a difference, but I received my last ‘decent’ salary from an employer in Jan 2018, then freelanced Feb 2018 – June 18, then didn’t earn anything as I was travelling.

I’m wanting to do this without an accountant as every penny counts right now. If someone can help (in layman terms) that’d be greatly appreciated.


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Fed Up Landlord

11:19 AM, 4th January 2020, About 4 years ago

Hi Rachel,
The questions you ask are quite broad. And if you are doing the return for 2019/19 you haven't got a lot of time.

I know you don't want to use an accountant but for a fairly simple ( for them) self assessment / rental return it's not going to be a great deal. One of my landlords gets a two property portfolio with self assessment on top of a day job income done for £112. It saved her at least three times that as the accountants know what to claim for. Such as home office costs, mileage, repairs, etc etc. Bear in mind you cannot any longer claim full costs of any mortgage finance. It is a percentage and it can be a pain to work out. You may even have made a loss in which case you can roll it over to the next year. It's up to you but I would make a few phone calls and see what you can get it done for.

Arnie Newington

15:37 PM, 5th January 2020, About 4 years ago

Hi Rachel

The tax year runs to 5 April 2019 and should be on an accruals basis.

This means you would include all of your income from the first tenant and the rent for the period 21 March 19 to 5 April 2019 for the second tenant.

I would recommend buying Carl Bayleys how to avoid property tax for details of the various expenses you can deduct from this income but if you have any straight forward questions I would be happy to help.


8:47 AM, 6th January 2020, About 4 years ago

Reply to the comment left by Gary Nock at 04/01/2020 - 11:19
Can someone recommend a Tax accountant that will do a two property portfolio with self assessment on top of a day job income done for £112 please?

Jireh Homes

9:40 AM, 6th January 2020, About 4 years ago

Agree you opt for your property page to be on accruals basis so that you can spread bulk of the rent for the second tenant into the 2019/20 tax year. And concur with recommendation for the purchase of Carl Bayleys book from Tax Café.

Fed Up Landlord

11:23 AM, 6th January 2020, About 4 years ago

Reply to the comment left by Dixie at 06/01/2020 - 08:47
Hi Dixie

Due to GDPR and data protection I cannot advise the details of the tax agent as it may identify the client. However if the facility allowed on Property 118 I do have a redacted scanned copy of the invoice which states:

"To our charges for work in the period to 5 November 2019 including:

Preparation of Rental Accounts for the Year Ended 5 April 2019 including:

Assisiting with the completion of your Annual Tax Return for the year ended 3 April 2019 and filing online with HM Revenue and Customs;

Checking Tax Calculations, Statements of Account, obtaining amendement as necessary and advising you of any payments required"

Hope this helps.



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