TV License Tax Deductible

BoracicLint

Hello,

I purchased a TV license for a lodger. Can anyone advise if this is deductible as an expense? It was only provided for their benefit as I don't watch live TV myself.

Thanks

zygurat789

BoracicLint wrote: »

Hello,

I purchased a TV license for a lodger. Can anyone advise if this is deductible as an expense? It was only provided for their benefit as I don't watch live TV myself.

Thanks

You need a TV licence if you own a TV no matter which programs you watch.

TheCyclingProgrammer

zygurat789 wrote: »

You need a TV licence if you own a TV no matter which programs you watch.

Not if you don't watch TV live. You do not need a TV licence if all you do is watch catch-up TV/DVDs etc. Surprised that isn't common knowledge on a forum like this!

To OP: I'd say its borderline whether it meets the wholly and exclusively rule. Unless your lodger lives in his own self-contained part of the house (i.e. a lock on the door) then I'd say its your responsibility to purchase a license if any TVs are used to watch live broadcasts in your home. If you want your lodgers to be able to watch (live) TV you legally have to have a TV license anyway.

You could claim it anyway but it would probably be disallowed if queried (seriously, £145/year * your marginal rate of tax so £58 if you're a higher rate tax payer, half that if you're on basic rate) - I wouldn't bother.

00ec25

TheCyclingProgrammer wrote: »

Unless your lodger lives in his own self-contained part of the house (i.e. a lock on the door) then I'd say its your responsibility to purchase a license if any TVs are used to watch live broadcasts in your home. If you want your lodgers to be able to watch (live) TV you legally have to have a TV license anyway.

where do you get your info from?
the TV licence website is notoriously bad at answering simple questions, all it says is a lodger needs their own licence if they watch (live) TV in their own room - no reference to it needing to be self contained or not

based on the info available the OP would not need a TV licence for "his" house since he does not access live TV himself , but the lodger would need a licence.

on that basis I would agree with you that a licence in the OP's name would be difficult to justify as a business cost since ostensibly it is as much his as his lodger's

Of course having bought a licence then that address now shows as having a licence and will not be listed on the "hit list" for threatening letters unless someone buys a new TV using a different name to that on the current licence. Which is a further complication as the address has only one licence and that is in the name of the OP so looks like personal costs not business costs

all the above assumes the OP is not using the rent a room scheme of course!

TheCyclingProgrammer

00ec25 wrote: »

where do you get your info from?
the TV licence website is notoriously bad at answering simple questions, all it says is a lodger needs their own licence if they watch (live) TV in their own room - no reference to it needing to be self contained or not

A licence is needed per household. A common example would be student halls. If each room has a lock on the door and is essentially a self-contained unit, it needs its own license. Additionally a license would be needed to cover any "shared" area.

I've just looked on the TV license website actually and I wasn't quite right...its not really about having a lock on the door, its about the tenancy agreement. It does mention a "self contained flat or annex" as needing its own license. Tenants covered by a single joint tenancy agreement would only need a single license. Lodgers or individuals with their own room and separate tenancy agreement need their own license.

http://www.tvlicensing.co.uk/check-if-you-need-one/for-your-home/tenants-and-lodgers-aud2

Its still not 100% clear to me but I'd say in OPs case, they personally do not need a license if they don't watch live TV as they say, but their lodger needs their own license in their own name.

00ec25

TheCyclingProgrammer wrote: »

I've just looked on the TV license website actually and I wasn't quite right...its not really about having a lock on the door, its about the tenancy agreement. It does mention a "self contained flat or annex" as needing its own license. Tenants covered by a single joint tenancy agreement would only need a single license. Lodgers or individuals with their own room and separate tenancy agreement need their own license.

precisely, hence I questioned your source as the only guide I am aware of is the one you have now read and its pxss poor!

a lodger with a TV in their own room needs a licence. I guess it should be in their own name to avoid the sort of issues the OP is struggling with - if OP buys a licence in OP's name then it still leaves the lodger exposed, as it would be the lodger watching the TV without a licence. If OP buys a licence in lodger's name then OP certainly cannot claim that as a business cost even if he paid for it.
If the TV is in a common area, rather than the lodger's room, then that leaves the OP exposed as it would be unconvincing to say that OP never watched it

Overall the chances of being caught would be negligible as the property would appear on the list as licensed so would not be queried (unless a TV purchase is reported using that address and a different buyer name) so best to just pay the money and forget about claiming it as a business cost

amiehall

Well most lodger contracts specifically make sure not to mention that the lodger will not have the sole use of any area of the house. If this is the case (as would be most common/sensible), one tv licence will cover the entire property.

jimmo

TheCyclingProgrammer wrote: »

You could claim it anyway but it would probably be disallowed if queried.

Why would it be disallowed?
If the OP had no need for a TV licence before taking in lodgers but now needs one because the lodgers want to watch live TV then the purpose of the expenditure was for the lettings business.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM37050.htm
Having bought the licence the OP will now be legally entitled to watch live TV but, regardless of whether (s)he does or not, that right is an incidental benefit which does not destroy the original business purpose of the expenditure.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM37400.htm

BoracicLint

Thanks everyone for the replies. My train of thought is the same as that of Jimmo. Prior to taking in lodgers I refused to purchase a TVL as everything I want to watch is on catchup/on-demand services.

I have opted out of the rent a room scheme as my expenses far exceed the benefit of the tax free allowance. I think I will claim the TVL as an expense, but proportion the cost accordingly to avoid any speculation that I am benefitting from it. I know it's a negligible expense 'TheCyclingProgrammer' but this is MSE and every little helps!

mjm3346

00ec25 wrote: »

Overall the chances of being caught would be negligible as the property would appear on the list as licensed so would not be queried (unless a TV purchase is reported using that address and a different buyer name) so best to just pay the money and forget about claiming it as a business cost

Purchases are not reported

http://www.tvlicensing.co.uk/faqs/FAQ86

The Wireless Telegraphy Act of 1967 (as amended) has been repealed, meaning that from 25 June 2013 onwards you no longer need to send us customer name and address details when you sell or rent out TV equipment. This also means your business no longer has to keep sales records to comply with the law on TV Licensing. If you don’t need these records for anything else you can destroy them from 25 June.

00ec25

mjm3346 wrote: »

Purchases are not reported

http://www.tvlicensing.co.uk/faqs/FAQ86

thanks, not up to date having been "caught" by the old rules as recently as 3 years ago