Income from property generally is called Rent, and for most purposes, the rent that is included in your tax return is the rents received and receivable between 6th April and 5th April in any tax year.
It’s important to record the GROSS rents receivable as this qualifies you for more tax relief (surprisingly) !
You should be keeping good records showing the income for each property that you own. Don’t just assume you can collect the information in total.
Most private landlords are not VAT registered for 1 simple reason: this would increase the rent payable by the tenant and as most private tenants have no way or right to recover the VAT it would be plain suicide to make your rents uncompetitive in the market. There may be a small number of occasions when it might make sense but I’ve yet to find out what they are! Rent is still exempt from VAT so don’t worry even if your total rents exceed the VAT threshhold.
If you want one of our free property income spreadsheets go to our useful links page to find out how.
And that’s it.
Please note though that we are not responsible either if you do or don’t take any advice on this page. If you are our client or become our client, we’ll be happy to identify any tax issues for your particular situation.