First ever tax return - rental income?

gwernybwch

Werdnal wrote: »

The rules can sometimes be a little vague, but if the boiler was fitted BEFORE the first let, it wouldn't be part of your letting expenses. Similarly, if you were improving an already working boiler with a new model, that would be classed as an "improvement" and similarly not included.

If the boiler failed during a let and you had to repair or replace, then the cost is allowable!

If your are suggesting that replacing a boiler with a newer or better model during a tenancy isn't a deductable expense, well it is possible to replace some things such as windows and boilers for a better one and have it as a deductable expense. You have to show that you are changing like-for-like whilst taking into account technological improvements ie changing a back boiler to a combi boiler and changing single glazed windows to double glazed windows.

tbs624

Just go onto the HMRC web pages and seek out the Property Income Manual (PIM) - all you need to know, straight from the horse's mouth

PIM2020 specifically covers the point in the post above

James_N

vbt wrote: »

Hi,

I have looked through various posts on MSE and also at the HMRC and Directgov websites but I can't find anything that specifically answers my questions so I'm creating a new post.

I had to relocate to London for work in January, meaning that I had to let out the flat that I own in Manchester. This means that I will need to complete a tax return.

I've never done a tax return before, but I have been looking at allowable and non-allowable expenses; as far as I can tell

• the service charge for the property is deductible
• the replacement costs for a brozen fridge-freezer and water heater timer are deductible (parts and labour)
• the fees I paid for letting the property are deductible, including the fee for protecting the deposit in a TDS

Also, from my research the wear and tear on furniture etc is not deductible.

Does anyone know if the above points are correct?

My final question is that as I have both rental costs in London, plus my mortgage costs in Manchester, can I deduct the cost of my rent or my mortgage as an expense against the rental income?

Also, I took out landlords insurance too - is this cost deductible?

In summary:
Mortgage cost pcm is aprox £700
Service charge aprox £120
Rent in London pcm (my share only) £650
New Fridge-freezer cost £350
Timer cost £100
Letting fees and TDS charge £175
Rental income £900 (9 month tenancy)

Grateful for any advice anyone has.

Thanks

If you are really at sea, pay an accountant the first year, you may find they save you money on things you never realised, and set you up right to carry on yourself.