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Allowable expenses and first let of property

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Author Topic: Allowable expenses and first let of property  (Read 65 times)
Newbie
Posts: 3

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« on: November 19, 2019, 06:15:47 PM »

Hi all,

we purchased a property early this year and rented out just before then end of the 2018/19. This is our first. There were a few costs in getting the property ready for rent (not capital expenses) but only cosmetic, such as painting, cleaning and boiler servicing etc. We also used an agent for a tenant find service, and we had Council Tax and a very small gas and electricity bill for the time we were getting the property ready and of course insurance.

We only received the first month rent before the end of the tax year.

My question is what is allowable expenses for my tax return and which ones can I not claim for the first letting. If anyone can help I would be grateful.

Thanks in advance

Kind regards

AliG
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« Reply #1 on: November 19, 2019, 07:57:07 PM »

All the things you mention there are allowable expenses... you can't claim for your own labour / time... but anything you bought to work on the property, travel to get those things, travel to and from the property, professional fees, bills. I am kinda unclear why you're differentiating between "first letting"... can you elaborate? They're all valid business expenses - the clock for expenses being valid doesn't start when someone is in the property, paying rent... otherwise Landlords wouldn't be able to claim in void periods.
Newbie
Posts: 3

I like property

« Reply #2 on: November 19, 2019, 10:29:16 PM »

Hi,

thanks for the prompt reply.  I had been wondering if, because it was the first let then there may be some of the normally allowable expenses were not allowed as they would be considered to be part of the preparation to let the house rather than expenses incurred letting the house.  Obviously good news from you advice.  Thanks again.

Kind Regards
AliG
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Posts: 3215

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« Reply #3 on: November 19, 2019, 11:17:12 PM »

I have never been aware of there being such a distinction and I have always claimed such expenses and HMRC has never once complained. It is possible such a distinction exists, but I don't care enough to research it because, I am learning, we are small-fry in the eyes of HMRC and as long as you're trying your best to do things right and fairly, no-one will come after you. It's Landlords who decide they won't even do a self-assessment and won't pay any tax on their rental income who may one day get fingered; and even that is questionable. My tax bill is what I'd call significant - if I was aggressive I think I would employ an Accountant and tell them to do their worst. Plenty do and plenty get great value for money, i.e. the fees they will pay the Accountant are less than what the Accountant saves them... plus the Accountant's fee is an allowable expense too. I think you'll be OK accounting for these things. I have thought about paying an Accountant... but, secretly, I probably enjoy self-assessment... I enjoy using computer systems which attempt to beat last year's attempt at the worst user interface ever... Christ, even the initial logon process is too onerous for words... like am email address, a random 13-digit numeric code plus some letters they send you (in the frikkin' post!). Enjoy it.
Newbie
Posts: 3

I like property

« Reply #4 on: November 20, 2019, 04:05:55 PM »

Thanks for the advice. Much appreciated
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