Some landlords 'are paying too much tax'

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Many landlords in the UK pay too much tax because they are missing out on allowances they are due, an industry expert has claimed.

Property firm Leaders believes that many new landlords are unaware of the deductions that they can legitimately claim when filling in tax returns.

"Landlords should bear in mind that they are permitted to make certain deductions from their rental income before calculating profit, although these deductions are only applicable when the property is being let or is available for letting," explained the firm's managing director, Paul Weller.

"We strongly advise landlords to keep all receipts and letting agent statements to prove income and expenditure relating to the rental of your property.

"If you have an organised filing system for your records, your tax return will be much easier to completeand you won't end up paying more tax than is strictly necessary."

According to the firm, landlords can deduct the cost of things like agent's letting and management fees, ground rent and maintenance charges on leasehold property and council tax while the property is vacant.

Recently, industry experts warned landlords that they should be aware that rules about service charges levied on tenants were about to change.

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