Newbie Landlord - Tax Question

Debt_Free_Chick

Think of your BTL as a business. That business has income (the rent) and expenses. You keep track of both over the course of a year and at the end you show the total income less the total expenses. Anything left over is profit and potentially taxable.

Bear in mind that there are separate rules for what you can deduct for tax purposes. You will need a special supplementary form to submit with your Self Assessment Tax return and there are Notes to help with completing this additional form. I strongly urge you to read the Notes as they may even list expenses you have incurred, but have not considered to be deductible for tax purposes!

daisyroots_2

I'm sorry, thesaint, I was advised by my Letting Agent 10 years ago that an Electrical Safety Certificate was required by law at the outset of each new tenancy and every five years. However, maybe that info is now out of date ? If I'm wrong, I still believe that getting the electrics professionally inspected before letting (especially for the first time) is a legitimate and deductible expense, whether or not required by law. If a tenant was electrocuted or a fire started because the electrics were faulty, I couldn't live with myself. The Revenue have never questioned this expense.

clutton_2

electrics - there is no specific law that says a certificate of safe electrics is required - but there are several requirements within H&SAW Acts that require landlords to provide a safe environment for their tenants. If push came to shove, how a landlord could prove he had taken the utmost care to ensure safe electricals, if he did not have a Cert if a difficult one.

Agents often demand certification to cover their own backs.

fraggle7581

My goodness, I've just logged on and found all your responses, thank you very much! You've all been extremely helpful, I really appreciate it.

I will give the Inland Revenue a call to see what advice they can offer, as well as reading the notes Debt Free Chick kindly pointed me in the direction of.

Thank you all very much!