Tax Advice Crucial as Hordes of People Expected to Visit London for Olympics
Experts suggest that landlords start taking tax advice and preparing their properties for rent. Time flies so fast, and the 2012 Olympic Games, which will be held in London, is almost here. The excitement around the nation is rising with just around 300 days more to go.
Landlords and rental property owners should be excited, too. Spectators and athletes, for sure, are going to stay in the accommodation places of London and surrounding areas to be part of this momentous event. What better way to earn and take advantage of this influx of people than offering accommodations?
Although it's still early to tell, UK's economy will benefit from the Olympics. It is certain, though, that offering a flat or even your living space for rent presents the opportunity of making extra money. Becoming a landlord for even just a few weeks during the Olympics can be very favorable.
One tax advice you should pay attention to is based on the Rent a Room Scheme created by HM Revenue & Customs (HMRC). According to the scheme, you can gain tax benefit from renting out a spare room. You can even receive as much as £4,250 per year, tax-free if you rent out a fully furnished room inside a residential property.
Tax Advice: How to be Eligible for the Tax Benefit
To be eligible for the tax benefit, the Rent a Room Scheme has the following requirements landlords must comply with:
1. The room you let must be furnished and must be a room or a whole floor inside your house.
2. The lodger should be allowed to occasionally have access to your family rooms.
3. Meals should be provided.
4. You must not let your whole house.
Even if you're not the owner of the residential property, you can still enjoy the tax benefit. The Rent a Room Scheme states that those who live in rented accommodations can let their space and become landlords themselves as long as their lease allows lodgers.
What's not Covered by 'Rent a Room'?
Another tax advice to follow is making sure you avoid situations that prevent you from gaining the tax benefit.
The Rent a Room Scheme doesn't apply if your home has been converted into a separate dwelling that is already being let.
The scheme also doesn't cover unfurnished rooms.
You can actually still go for any of these leasing situations in each one of these instances you'll have to announce the entire letting earnings to HMRC; spending money on taxes the normal way and thus failing to obtain the tax benefit.
Tips for Olympic Games Landlords
To protect Olympic Games landlords, they should also make sure that tenants show respect and can pay on time. Another way to ensure the let runs smoothly is to check the tenant's employer references as well as previous landlord references.
Performing a credit check can help tell whether or not a tenant can afford to pay. This is very valuable tax advice.
For professional tax advice for your company accounts on filing of tax returns visit our website at http://www.haysdentraining.co.uk/
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