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taxable deductions??
new_home_owner_3
Posts: 1,191 Forumite
in Cutting tax
I spoke to the tax office today, they have told me i cant fill a tax return in until i have had the income from my rental property and earned from it for 12 months.
Is this correct?
They also said has its below 2500 they will be able to deduct it from our tax code, they said write a letter with all our figures down and they will be in touch for what we need to do.
As its our first year with the deductions when i have worked it out we are just about breaking even, with all the setup costs.;)
Ive also been told i can claim 10% percent for wear and tear.
Does anyone know how much you should put down for phone calls, stationary and fuel, im sure i seen it on here before, and it says has we earn less than 3000 pound a year you do not have to give a breakdown of exact costs but i dont really want to go over the top.
cheers.
Is this correct?
They also said has its below 2500 they will be able to deduct it from our tax code, they said write a letter with all our figures down and they will be in touch for what we need to do.
As its our first year with the deductions when i have worked it out we are just about breaking even, with all the setup costs.;)
Ive also been told i can claim 10% percent for wear and tear.
Does anyone know how much you should put down for phone calls, stationary and fuel, im sure i seen it on here before, and it says has we earn less than 3000 pound a year you do not have to give a breakdown of exact costs but i dont really want to go over the top.
cheers.
0
Comments
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The tax office is correct - as long as the profit from your letting is under £2500 you have no need to self assess and can just send an income and expenditure statement and they will collect the tax due through your code number on a monthly basis.
You will have to give a breakdown of the costs and you include in the costs what you have actually spent - there is no fixed amount as every case is different. If you don't have a note of the actual amounts, HMRC will accept a reasonble estimate.
You can include 10% of the gross rents as a wear and tear allowance if the property is let furninshed.£705,000 raised by client groups in the past 18 mths :beer:0 -
i was thinking of splitting it between me and the wife as the property is in both of our names, and we both pay tax at 22%.
would there be ay difference?0 -
If you own the house jointly then you have to declare half each. The basic rate of tax is 20% and it wont make any difference to the overall tax charge.£705,000 raised by client groups in the past 18 mths :beer:0
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