SMF - Just Installed!

1st tax return!

Started by grahamC, September 08, 2008, 09:58:45 AM

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grahamC

Hi everyone. Been browsing through the site and forum and thought id join up to ask for some advice.

I became a landlord in february when i moved in with the mrs and rented out my old place. The tenant is reliable (old workmate) and pays everytime on time so i have no worries there.

I have to do my first tax return soon. I have got some info about what i can put in as deductable (interest on mortgage, leasehold company fees, wear and tear allowance) but are there any other "Loopholes" for paying as little tax as possible !!

Obviously as i only started renting in february i will only be paying tax for this year on feb -aprils rent. So im using this as a practice run for the full years tax next year in order to pay the least amount possible.

Appreciate any help / advice!

propertyfag

Hey Graham,

You pretty much listed the most common deductables. Interest, wear and tear, anything you've replaced..etc. Also, the Gas Saftey certificate cost, tenancy deposit scheme. Anything like that.

If you want real loop holes, you'll probably need to talk to a specialised accountant. However, I know a lot of landlords that have registered their landlord escapades as a business, and save tax that way- as businesses have better tax benefits.

If you hear of any loopholes, or do end up deducting tax in any other way, please let us know :)


grahamC

Will do mate! got a couple of mates who run their own business so might start making some enquiries what they get away with on their tax!

Great site by the way, loads of good stuff here. I will keep you all posted on my own quest to first become debt free, and then become a property millionaire  ;D

Badger

What info did you find out young man !

MarkT

hi

not sure if its worth doing for one property but setting up your own letting agent / managment company can be useful if you have a lot of rent and not many costs or if you have lots of props


Badger

Hi Mark

Yes, i have heard of this a few times even for one place.  Good idea, although corporation tax does play apart if you have your own business.  And you also have the added bonus of TAX returns etc each month, but yes a good idea.
The other way is just to get someone in the know to do your book keeping and submit your, self assesment each year. Happy days

grahamC

Havent been on here for a while so just seen this:

I found this link,

http://www.landlordzone.co.uk/FAQ/index.php?sid=757135&lang=en&action=artikel&cat=5&id=25&artlang=en


covers pretty much everything i think!!