Simple Yes/No Self Assessment Qns

Cottonbud

Last year I started renting out the house I own and living in a cheaper rented property.
1. Can I claim the rent I pay?

I do all the maintenance on the property that I rent.
2. I can claim for costs of paint, replacing broken things etc but can I claim for my time? ie if a tradesman would have charged 25 quid per hour is there a way of claiming for the cost of my time.

It seems harsh that I need to pay tax on rental income when the rent doesn't cover the mortgage payments.
3. Is it only the mortgage interest that I can claim?

Many thanks in advance.
:beer:

soolin

1 ) No
2) No (although I do need extra words here apart from yes and no because technically you could charge if you were self employed and then paid tax on your income from odd jobs)
3) Against what? That isn't an expense of renting and their are rules about allowable claims but again they fall outside your yes/no criteria.

Can I suggest you get an accountant and these are not simple yes no answers.

Cottonbud

Thanks Soolin. Of course I should have known, when we are talking tax there are few yes/no answers!

4. And reading other posts: if my income from letting is lower than the letting costs (mortgage interest, repairs, agency fees ...) will I get a tax refund (from my primary income) or will the 'costs' carry over to the next FY?

Therefore is it in my interest to file ASAP to get that 'refund' or will it materialise next FY anyway so I can take my time?

Thanks.

soolin

Personally I would get an accountant quickly and sort out what your allowable expenses are, paying a good accountant a few hundred pounds will probably save money in the long run especially with the mortgage question as there are all sorts of rules about equity release and such like. I assume also that you converted your mortgage to a proper one for letting purposes and that the mortgage lender knows the place is let?

Elaine_Wilson

4. No - Yes

Just to clarify, property losses are not able to be set against other income unless they arise from holiday lettings. So you would carry them forward against future rental profits.