Landlords reminded to complete tax returns ? buy to let mortgages

29 January 2009

Borrowers with buy to let mortgages have been urged to ensure they meet the deadline for completing their tax return.

January 31st is the final date that returns will be accepted and failure to comply could result in landlords being given "hefty" fines, noted Paragon Mortgages.

Buy to let investors must declare all income, costs and expenditure connected to their property portfolio on the self-assessment returns.

Paragon managing director John Heron said that a penalty for missing a tax demand is the "last thing" that landlords need at the moment.

"How you implement, manage and run your tax affairs could have a major impact on your property investments and their financial profitability," he advised.

The firm has created a guide on taxes for people with buy to let mortgages.

Meanwhile, the National Landlords Association has advised members in London and the south-east to avoid lettings agents that charge unfair fees.