Property income expenses

crazygaijin

Property income expenses
Is there any good source of information of what is allowed as business expenses? Can someone recommend a good site for reducing the taxable profit from property rental income?

The Gov site is good but are there any independent websites?

What about mobile phone contract and even lease car?

I live in Wales but my rental property is in London and I do maintenance myself so is there a mileage allowance for expenses?

fengirl_2

The simple answer is to refer to to the legislation which states that any expenditure which is incurred wholly and exclusively in earning the profits of the business are allowable for tax. As all businesses are different, there can be no specific list. If you are keeping proper records of everything you spend in the business, then you shouldnt miss anything.

The mileage allowance is 40p pm for the first 10,000 miles and 25p pm thereafter. If you use a lease car, you cannot claim the mileage allowance as it is not your car. Instead you would need to include all the running costs of the car (including lease payments) and then work out the privtae proportion and disallow that. If you are making phone calls in connection with the letting, then of course these need to be included.

crazygaijin

Thanks very much Fengirl.

I also run an import export business, so lots of flights, hotels and other expences with that.

I am keeping very good books but dread the tax man investigating.