House letting and registering for self assessment

mikey9863

Sorted at last.....I managed to speak to a lovely HMRC woman who informed me that we can ring them at the end of the tax year with the figures and they will tax accordingly.......WHOOP!!!

G_M

Pixie5740 wrote: »

Are you going to be using a letting agency whilst you're away? If not, what address for the serving of notices are you going to give your tenant?

Have you seen this useful guide for NEW LANDLORDS: Advice & Information for New Landlords.

You might find something in it that you've missed. Better to spot it now than try and sort it out whilst you're travelling.

* New landlords: advice, information & links

* HMRC (Non Resident [= overseas] Landlord Scheme)


Landlord and Tenant Act 1987 Section 48

48 Notification by landlord of address for service of notices.

(1)A landlord of premises to which this Part applies shall by notice furnish the tenant with an address in England and Wales at which notices (including notices in proceedings) may be served on him by the tenant.
(2)Where a landlord of any such premises fails to comply with subsection (1), any rent or service charge otherwise due from the tenant to the landlord shall (subject to subsection (3)) be treated for all purposes as not being due from the tenant to the landlord at any time before the landlord does comply with that subsection.

pyueck

mikey9863 wrote: »

The solicitor fee is for the tenancy agreement. it is an unfurnished property.

I have just spoke to HMRC again. Twice.in the first call they say I have to self assess even if I don't make a profitand the other says i only have to if I am making a profit of £2500 or more.....Head scratching time.....

OK so the solicitor fee is fine.

What about the 'surveyor' what was that for, very much doubt can be deducted.

What is 'Plus we are allowing an amount for replacing and damaged fixtures through normal maintenance.'. Are these specific costs or just an estimate of future costs? You can only claim specific costs as you can only claim wear and tear allowance on a furnished property.

mikey9863

The surveyer is to take a snapshot report on the state of the property so that when the tenant vacates we can take another snapshot in case of malicious damage and we then can apply to the deposit scheme to address this through the withholding of reasonable funds for repair. Apparently this is an acceptable cost for HMRC.

pyueck

mikey9863 wrote: »

The surveyer is to take a snapshot report on the state of the property so that when the tenant vacates we can take another snapshot in case of malicious damage and we then can apply to the deposit scheme to address this through the withholding of reasonable funds for repair. Apparently this is an acceptable cost for HMRC.

Yes that is fine, but not what I would normally call a surveyor.

What about 'Plus we are allowing an amount for replacing and damaged fixtures through normal maintenance.'

mikey9863

pyueck wrote: »

What about 'Plus we are allowing an amount for replacing and damaged fixtures through normal maintenance.'

Things like painting the sheds and fencing, annual gravel for the driveway, alarm maintenance and other annual costs that we have paid for each year on a year by year basis.

pyueck

mikey9863 wrote: »

Things like painting the sheds and fencing, annual gravel for the driveway, alarm maintenance and other annual costs that we have paid for each year on a year by year basis.

You paint the shed/fences and gravel the drive every year? If so can I move in, sounds like the place must be a showroom.

Are these actually costs incurred in the year. If not you can't claim them every year only in the year incurred. If HMRC ask they will want to see invoices.

mikey9863

pyueck wrote: »

You paint the shed/fences and gravel the drive every year? If so can I move in, sounds like the place must be a showroom.

Are these actually costs incurred in the year. If not you can't claim them every year only in the year incurred. If HMRC ask they will want to see invoices.

Yep! Every year we renew the gravel, paint all the fences and sheds, plus paint any other paint work, clear all the main sewers and guttering......total show house

dimbo61

You might want to get a video inventory done and not a survey from a surveyor.
You do not need to use a solicitor to draw up a tenancy agreement but it would be wise to join the NLA or RLA

martindow

mikey9863 wrote: »

Sorted at last.....I managed to speak to a lovely HMRC woman who informed me that we can ring them at the end of the tax year with the figures and they will tax accordingly.......WHOOP!!!

In view of the conflicting advice you've had I would write quoting the details of the call and asking them to confirm this in writing.