Landlords have been reminded of their need to fill in a Self Assessment Tax Return by January 31st.
Paragon Mortgages says that landlords must note down all their rent book income, expenditure and costs or face being hit with a "hefty fine".
John Heron, Paragon Mortgages' managing director, says that efficient tax planning is vital and the last thing that landlords need is a large tax demand that they had not been expecting.
"How you implement, manage and run your tax affairs could have a major impact on your property investments and their financial profitability," he warns.
With such large sums of money involved and the prospect of a hefty fine for missing deadlines, landlords may increasingly seek low-cost, practical advice.
Mr Heron states that tax is payable on rental income after the deduction of running costs, along with the costs associated with the financing of the property's purchase and development.
He adds that tax reliefs are available - including costs incurred in the running of a portfolio.
Published on: January 28, 2009