Tax deadline is fast approaching for landlords

by Mark Alexander

12:11 PM, 24th November 2010
About 8 years ago

Tax deadline is fast approaching for landlords

Make Text Bigger
Tax deadline is fast approaching for landlords

The tax countdown clock is ticking for landlords who have less than 50 working days left before the January 31, 2011 deadline.

The date is not only important because any tax return filed late is hit with an automatic £100 penalty but also for several other reasons:

  • The time for making amendments to the figures in the 2008-09 tax return closes
  • A new countdown of 28 days starts – and anyone owing tax due on that date may pick up a 5% fine of the amount outstanding
  • Penalties for late filing from earlier years are also hiked up another notch.

Any landlord filing a tax return also has to do so online as the October 31 deadline for submitting paper returns has passed.

One problem is that to file online, new landlords have to register and need a UTR – unique tax reference number – and online password to access the system.

To register, taxpayers need a UTR that can take up to 14 days to arrive in the post and then the password is sent out after registration, which can add another 14 days in to the process.

HMRC backlogs and glitches are affecting tax filing

“Landlords who have not already got their accounts and tax returns underway really need to act quickly,” said Steve Sims, of Yardleystar Property, the Money Centre’s preferred tax and accounting partner.

“Most accountants are pretty well booked up now and the deadline is closer than most people think when the Christmas and New Year holidays are blocked out.

“We have some slots left in our pipeline to guarantee filing tax returns by January 31. Anyone who wants to book should get in touch and we will deal with them on a first-come, first-served basis.”

Another worry is the time HMRC is taking to respond to inquiries. Staff cuts and ineffective computer systems mean letters with HMRC since June are still backed up.

“Some customers need information, reference numbers or statements of account and HMRC just is not responding to inquiries even though they have a dedicated tax agent hotline,” said Steve.

“I would advise anyone who needs to file in January to get their accounts underway as soon as possible to avoid backlogs, delays and inevitable online filing glitches.”



Comments

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Taking rent from tenant overlap?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More