UK Landlord Forum / Life

Please may I know for the below items, which are tax claimable and which not, and under which parts of claim ?

1) Travel from home to the property I rent out (via public transportation - I have receipt of oyster top-up)
2) British Gas insurance (electrical, plumbing and kitchen appliances)
3) Deposit Protection Scheme fees
4) EPC
5) Replacement of consumer unit, appliances testing.
6) Landlord Insurance (legal expenses and loss of income)
7) Etc like paint, paint brushes, light bulbs, and the likes.
8 ) Food and drinks while traveling to and working on flat
9) Hotel stay (should a day or 2 are needed after tenants move out / supervise work of handyman before tenant move in)

Looking forward to kind advice.

Thank you.


Looking

I'd say 1-7 are OK. I assume you still eat and drink, even if you're not travelling to the flat, so I think you'd struggle to justify 8. Can you really justify the cost of a hotel? If it's too far to go home at night, why not stay in the flat?

Hi Simon,

Thank you for kind feedback. I am not able to stay in my flat as it is unfurnished. I would have to sleep on the floor (no carpet) should I stay there. Also, it takes approximately 3 hours to get to my flat from my home, and appx 3 hours to get back - quite a tiring journey on public transportation ..

Ultimately it comes down to what's reasonable. As long as you're not planning a week at the Ritz, I don't think the tax man would have a problem with it. Even if they did pick up on it at a later date, there worst they'd probably do is make you pay the tax and a bit of interest for an honest mistake.

Expenses need to be wholly and exclusively for their use. Sleeping in a hotel, regardless of your ability to drive and having a property such a long way away (which was your choice) is not wholly and exclusive to you painting and decorating.  You have to sleep somewhere every night.

Business travel & subsistence is an allowable expense for employees and the self-employed. I can't see anything says that it can't be claimed for Schedule A.

Thanks Simon, Riptide, for kind replies. I have decided to not include the hotel stay and food expenses in the claims - to avoid any constrains. Also, I am new to this, please do bear with me ..

I must be honest to say I am in a state at the moment. I have submitted my return on time. In that, while working to compile all my receipts,  I find the below :

* please note I am in a position where I didn't earn enough to pay tax sadly. Even with the total rental income I get, and if I do not minus any of the expenses, my income is still less than £10,000.

Below is what I found out :

1) I had an expenses included in my self assessment of £72 that I used to fix the toilet of my flat. I can't find the receipt !!! What is the implication of this ?
2) I also found that I have an expenses of £450 (spent on replacement of consumer unit, appliances testing, etc electrical works) in 1 receipt that I did not include in my self assessment.
3) I also realise that I didn't attach any receipts / explanations of my expenses in my self assessment. All I did was to plus all my expenses and then just include them as figures in my self assessment. Is this ok ? What do you guys normally do ?

As mentioned, since I am in a position where I don't earn enough to pay tax, should I amend the above mentioned finding ? I am thinking to just leave the works as they are.

This is all so stressful for me - my next self assessment - I will have an accountant do it for me ..

I wouldn't worry about it. HMRC don't expect you to send a full set of accounts in with your return, and they certainly don't need copies of all your invoices. The system works largely on trust. Every year they review a small proportion of the returns they receive but they haven't the resources to check a lot, so they concentrate mainly on bigger and/or higher-risk "customers".  Given that your total income is below the personal allowance, they're not going to be very interested in you. They don't expect you to be a tax expert: as long as you have a reasonable stab at it, and don't actively try to defraud the system, it's all good.

HMRC don't have the resources to investigate small-fry I expect. Relax. There are real criminal tax evaders out there.

Thank you so so much, Simon, Hipogriff - for your kind advices. I feel better now. Thank you ever so much !

There is absolutely no need to spend your limited resources on accountants fees.Everyone loses some receipts,small sums won't be queried.I do hope you have not bitten off more than you can chew emotionally.I speak as a fellow worrier-albeit of a more feisty temperament.You will encounter some manipulative problem tenants,and could end up caving in to blackmail.On the other hand,you have taken quite a bold step in getting this far,well done you!