Expenses exceed income advice

rachelcward

At next tax return my expenses will exceed income due to needing a new boiler installing in my rental property. I have previously used an Accountant but would like to file my own return and so keep down costs. I PAYE on my employment income and occupational pension. How can I recoup tax paid on all expenses? Is it best to bite the bullet, use the services of my Accountant and in so doing avoid paying unnecessary tax? All advice greatfully received.

rosie383

Hi Rachel. You would be better off on a different board with this question. Just copy and paste here
http://forums.moneysavingexpert.com/...aysprune=&f=22

vectistim

I am not an account etc: I think land and property losses can only be carried forward into a future tax year to set against land and property profits in the future, as opposed to against other taxable income in the current tax year.

silvercar

Not sure if a new boiler counts as maintenance and repairs or capital outlay, but assuming that it is allowed to be considered within the expenses for the year in question:

If your rental expenses exceed your rental income the excess is carried forward to next year and can be used against next years rental income. So you can't get the tax on your employment income or pension reduced but you will get the benefit in the following tax year.

vectistim

A new boiler _might_ come under the Landlord Energy Saving Allowance:
https://www.gov.uk/landlords-energy-saving-allowance

booksurr

assuming the boiler is replacing an existing one then unless the specification of the new one is hugely different to the old one it would be a straight forward repair cost not a capital item as there would be no element of improvement, only replacement like for like

as others say above all that means is you have costs in excess of rental income , ie a loss and all you can do with that is carry it forward to next year to add to next year's costs at which time you will (hopefully) be back to excess income over costs but with a small profit that you would otherwise have had and so at that point will pay less tax

surely you looked at the tax returns your accountant has prepared to date since it is your tax return and you should know how it works ?