Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • pinklady21
    • By pinklady21 4th Jan 18, 4:33 PM
    • 360Posts
    • 228Thanks
    pinklady21
    Property Letting - allowable expenses
    • #1
    • 4th Jan 18, 4:33 PM
    Property Letting - allowable expenses 4th Jan 18 at 4:33 PM
    Hello
    Wonder if anyone can give me a sanity check on the allowable letting expenses I am including in my SA tax return for 2016/17.

    I understand that the 10% Wear and Tear allowance is no longer permitted.
    I am a bit worried I might have missed something, or included something that I should not.....

    The list of expenses against the gross rent includes:

    Mortgage Interest
    Insurance
    Repairs
    Travel Expenses for visits to property
    Stationery and Postage
    Telephone calls
    Utility bills / council tax during void periods
    Replacement of furnishings
    Letting agent fees
    Advertising fees

    Please let me know if I have missed anything.
    Thank you!
Page 1
    • 00ec25
    • By 00ec25 4th Jan 18, 6:41 PM
    • 5,781 Posts
    • 5,226 Thanks
    00ec25
    • #2
    • 4th Jan 18, 6:41 PM
    • #2
    • 4th Jan 18, 6:41 PM
    https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income
    • Sale2018
    • By Sale2018 5th Jan 18, 7:17 PM
    • 9 Posts
    • 19 Thanks
    Sale2018
    • #3
    • 5th Jan 18, 7:17 PM
    • #3
    • 5th Jan 18, 7:17 PM
    Ground rent if your property is leasehold.

    Travel expenses, my accountant said I can't deduct these as this is only for Ltd companies???.
    • 00ec25
    • By 00ec25 5th Jan 18, 7:24 PM
    • 5,781 Posts
    • 5,226 Thanks
    00ec25
    • #4
    • 5th Jan 18, 7:24 PM
    • #4
    • 5th Jan 18, 7:24 PM
    Travel expenses, my accountant said I can't deduct these as this is only for Ltd companies???.
    Originally posted by Sale2018
    your accountant is wrong, or being lazy not wanting to explain it

    Travel expenses are a target for HMRC so if claimed then expect to be challenged to prove that the cost was wholly and necessarily incurred on the property related business only and did not involve any other "activity" at the same time.

    You can't go shopping whilst visiting the property and you can't claim the mileage if you were simply stopping off there on the way to somewhere else as the purpose of the journey was not wholly business related.
    • Sale2018
    • By Sale2018 5th Jan 18, 10:49 PM
    • 9 Posts
    • 19 Thanks
    Sale2018
    • #5
    • 5th Jan 18, 10:49 PM
    • #5
    • 5th Jan 18, 10:49 PM
    Thanks for the clarification. In the past 7 years my accountant has not allowed me to deduct travel expenses.

    Can I ask what records do you keep for these travel expenses, I sure will press my accountant for a better explaination.

    As for the mortgage interest, isn't that being phased out??.

    Thanks again.
    • chrismac1
    • By chrismac1 6th Jan 18, 8:44 AM
    • 2,480 Posts
    • 1,470 Thanks
    chrismac1
    • #6
    • 6th Jan 18, 8:44 AM
    • #6
    • 6th Jan 18, 8:44 AM
    To give a specific example, a client of mine (I am an accountant) had a chalet in Chamonix. She made 5 or so trips there a year.

    Two were on her own and on each she had a lot of appointments with property agents, cleaners, repairers and so on. No skiing. In my view no ancillary purpose, so we claimed all the expenses relating to these trips.

    The other trips were for her whole family and involved skiing. Clear ancillary purpose, so not claimed as business expense.
    Hideous Muddles from Right Charlies
    • 00ec25
    • By 00ec25 6th Jan 18, 9:55 AM
    • 5,781 Posts
    • 5,226 Thanks
    00ec25
    • #7
    • 6th Jan 18, 9:55 AM
    • #7
    • 6th Jan 18, 9:55 AM
    Thanks for the clarification. In the past 7 years my accountant has not allowed me to deduct travel expenses.

    Can I ask what records do you keep for these travel expenses, I sure will press my accountant for a better explaination.
    Originally posted by Sale2018
    it is not as simple as a tick list. As chrismac1 says, you have to be able to explain why you went there and be convincing.

    As for the mortgage interest, isn't that being phased out??.

    Thanks again.
    Originally posted by Sale2018
    no they are not being "phased out", the rules are however different wef April 2017

    https://www.gov.uk/guidance/changes-to-tax-relief-for-residential-landlords-how-its-worked-out-including-case-studies
    • Mahsroh
    • By Mahsroh 15th Jan 18, 2:32 PM
    • 110 Posts
    • 75 Thanks
    Mahsroh
    • #8
    • 15th Jan 18, 2:32 PM
    • #8
    • 15th Jan 18, 2:32 PM
    Personally, I've never claimed any travel expenses, even though there is an entitlement to do so.


    As others have said, it's hard to prove, likely to be challenged and more often than not is part of a "multi-purpose" trip.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,354Posts Today

8,703Users online

Martin's Twitter