Are Storage costs allowable deductions for House Rental Tax?

dkirkuk

I am going to be working abroad (for a british company) for a few years. I have chosen to rent my house out part-furnished and have secured a tenant through a letting agent.
There are a few large items of surplus furniture and I thought I would have to sell / dispose of it, however I wondered if storage costs can be considered as allowable expenses on the tax return for the rental? I looked at the HMRC guidance but it wasn't clear.
Also, having never had to do a tax self assessment before, I have no idea how I go about doing this, particualrly as I will only be back in the UK each April and October? Or am I better to arrange for someone to do it on my behalf each year and if so who would that be ? Letting agent, accountant...?
Thanks in advance for any advice

00ec25

there is an awful lot you have to learn and frankly given your level of ignorance at this late stage in your plans you would be better off using an accountant especially given you may be eligible for non domiciled status which will significantly complicate your tax affairs, remember its not just the rental income you have to declare , it's all your income from employment, savings and rental

first off - have you even heard of the non resident LL scheme because it applies to you http://www.hmrc.gov.uk/international/nr-landlords.htm since you will be out of the UK whilst letting property in the UK

secondly storage costs for personal possessions (even if you regard the items as ones you would provide if let as fully furnished) are not eligible costs as the the storage is now wholly related to business use

Kynthia

For an expense to be allowable for tax purposes it must be 'wholly and exclusively' for the property rental business. The storage costs are for holding your personal possessions safely while you are away which is therefore not just a property rental business expense. Therefore I don't believe it's allowable.

A letting agent wouldn't get involved in your tax return. Although if you are a non-resident landlord your agent could deduct tax direct from your rent. I'm afraid I don't know whether you'd be considered non-resident or not. Otherwise you could get a local accountant to do it each year or do it yourself. The HMRC give you until October following the end of the tax year to submit a paper return, or the following January for an online self assessment return. Therefore it's possible to do yourself as you have months to submit it. However an accountant will also be able to maximise your deductions with their knowledge as well as their fee be tax deductible.

dkirkuk

No I wasn't aware of the non-resident LL scheme, but having followed the link I don't think I will meet that definition (each contract I get will be less than the 6 month definition for "usual abode" and I will be back in the UK between contracts)

Guest101

dkirkuk wrote: »

No I wasn't aware of the non-resident LL scheme, but having followed the link I don't think I will meet that definition (each contract I get will be less than the 6 month definition for "usual abode" and I will be back in the UK between contracts)

Where will you stay?

dkirkuk

I'll be in various parts of Italy. Basically it is seasonal work, so I'll have a contract for 4-5 months at a time and be posted somewhere in Italy for the duration of that contract, and then will apply for the next contract which would see me posted to another location.