New landlords had time till October 5 to register with the HMRC rental incomes they had received during the tax year to April 2015, legal and tax adviser Moore Blatch has warned.
If you fail to register for self-assessment by the 5th and submit a tax return by the end of January 2016 (31 October 2016 for a paper tax return) you could face an HMRC fine. The amount for being a day late with the registration is £100 and escalates if the tax return is not registered in three months or more.
Rental income of less than £2,500 can be dealt with by the PAYE system for landlords who are working, or in receipt of a pension.
Registration for self-assessment is best undertaken by submission of the HMRC form SA1 – https://online.hmrc.gov.uk/shortforms/form/SA1. Submission of electronic tax returns can be done by using HMRC’s own online system, third party software or by using a professional adviser.
Tom Lacey, chartered tax adviser at Moore Blatch, said, “Many new landlords may not be aware that they must register for self-assessment and failure to do so can create significant financial penalties. Online registration is quite a simple process and for anyone who needs more help you should speak to an accountant or tax adviser”
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