Benefits of Digital Tax Return Software for Landlords
Every landlord wants to save time on their tax return. With cloud-based digital tax software, this is now a possibility for all time-pressed landlords. Regardless of whether you’re a portfolio landlord, run an HMO or accidentally became a landlord- this type of software offers the following benefits:
Income tax liability automatically calculated
Even for the most savvy landlord, tax is a completely different ball game. And with tax rules, particularly for landlords, constantly changing- we need all the help we can get. With the right tax software, your income tax liability will be calculated as you enter your details- there’s no need for complicated calculations!
Although landlords are beginning to take a bigger tax hit with the reduction of mortgage interest relief, there are still plenty of deductions, such as tax allowances and expenses, that can be used to reduce your liability. With digital tax software, you can see where you can make savings and receive prompts to take advantage of any applicable allowances you may not have been aware of. Not only will you save by using simple online software, you won’t need to see an expensive tax advisor for advice either!
Avoid expensive mistakes
Many landlords make mistakes when completing their tax return- the legislation is complicated and often confusing. Tax penalties are given for errors, although sometimes you can avoid this if it can be proven you made a genuine mistake. With tax software, the majority of the work is done for you and leaves little room for error. Plus, with SimpleTax software, you can log back in and amend errors.
Multiple income streams
Most landlords don’t run a buy-to-let as their only source of income, and tax software can account for multiple income streams. You’ll want a software that can handle all sources including employed, self-employed and retired. If you have property abroad, are a non-resident or have sold property and need to record Capital Gains tax- you’ll need a software that can take this into account.
Just as buy-to-let is turning to online resources to find tenants and create tenancy agreements, so should tax returns. You don’t need to fuss with random pieces of paper at the end of the tax year to document incomings and outgoings, you can now keep records digitally throughout the year. This makes it far easier when it comes to filing your tax return every year, and allows you to cross-check along the way. HMRC are also aiming to implement ‘Making Tax Digital’ by 2020, so you should get on board now.
If you’re ready to make your tax life much easier by going digital, and with a software that can handle all of the above and more, then take a look at SimpleTax – there’s a 14-day free trial and with a single return starting from £25, what are you waiting for?
Do you have a question about the recent changes on mortgage interest relief?
A Landlord Tax helpline is now available with Upad: