Self Assessment

Suzanne_Louise

Hello. I currently rent my property out, and have a self assessment form to complete. I have a question though. For the 1st year of renting, it was costing me £160 per month, due to paying management fees and have the Buy to Let mortage on repayment terms. Does this go into my expenses???? Typically, I'm finding the guidelines as clear as mud........ Thanks in advance for any advice.

Gertie_Walker

You need to include all the expenses conected with the letting. This includes agents fees and mortgage interest (not repayments).

chrismac1

Record every single item of expenditure you incur. These will fall into 3 broad categories - assuming yours is not a Furnished Holiday Let which have different rules:

1. Capital - spends related to the fabric of the building and not repairs or renewals of parts of that building. Keep good records of this and you'll keep any possible Capital Gains Tax bill down when you finally sell up.

2. Allowable rental expenditure - all sorts of things which are necessarily incurred in achieving your rental income. Advertising, initial expenses on furnishings before you let, wear and tear once you do let, repairs / replacements of things like bathtubs, accountancy fees, letting agents' fees, any utility bills you pick up for tenants, mortgage interest but not the capital element, insurance, anything else you spend money on which can be identified as relating to the income stream and not your personal expenses.

3. Expenditure you can't claim for - the commonest one being travel to and from the property from your home. The logic here is that you could buy a property near your home and it would cost nothing for the travel. If you instead decide to buy in Wellington NZ the airline tickets to and from NZ are not tax-deductible!

antrobus

Gertie_Walker wrote: »

You need to include all the expenses conected with the letting. This includes agents fees and mortgage interest (not repayments).

Seconded.

Ensure you get a statement from the lender. Claim back the interest charged on that statement.