Strange Problem with Tax Return (Rentals)

tigerspill

Hi,

A number of years ago, four of us bought three BTL houses.

Each year we complete our Self Assessments and all has been fine.

Now we are completing our assessments for 15/16 but when we enter the SAME details, my return flags a warning for the "Property Repairs and Maintenance:" field -

"WARNING: This figure is high in relation to 'Total rents and other income from property'. Read Help"

If I reduce the number down, I can get rid of the message. But the number I am using is correct.

My wife and the others dont get this and they are using exactly the same numbers.

Any thoughts on this?

Thanks

kinger101

As long as you're confident in the way you've calculated the number (e.g. no capital expenditure in there), don't worry about it. I'd also double check you don't have an input error in the income sections of the form to which this number relates.

fishpond

Agree with above, especially :- I'd also double check you don't have an input error in the income sections of the form"

tigerspill

One thing I have included is for a new kitchen. I believe that this is fine as long as it doesn't improve the house form when I purchased. Basically it had got completely worn down to the extent it needed work.
This is what pushed the repair number up.
I assume this is OK - I read a number of places that this was fine.

I have also deleted the "UK Property" section twice now and re-entered from scratch. So am confident it is right. Could it relate to any other part of the form?

I also compared the output form with my sides and it seems identical.

kinger101

As long as it's broadly the equivalent in terms of functionality and specification compared to the last kitchen, then treating as maintenance is fine. You'd need to do some apportionment if the last one didn't have a built-in dishwasher and this one does etc. Just ask yourself does this kitchen do more than the last one?

The flag is there really to prompt you to check your figures and understanding of what's allowable. In reality, there will be spikes in maintenance expenditure. One year you might only need to replace a door handle. The next the boiler might die.

gallygirl

I don't know why you have had this message and not the others - could your rental income be a higher % of your overall income than the others?

I had that message last year, submitted anyway as I knew it was correct (we'd had a flat roof replaced which cost quite a bit). I was 1/2 expecting to be 'randomly selected' for an inspection but it didn't happen. OH didn't get the message - but he does have another btl property so overall the % of repairs to income was lower, plus he has a pension so btl income only a small part.

tigerspill

gallygirl wrote: »

I don't know why you have had this message and not the others - could your rental income be a higher % of your overall income than the others?

I had that message last year, submitted anyway as I knew it was correct (we'd had a flat roof replaced which cost quite a bit). I was 1/2 expecting to be 'randomly selected' for an inspection but it didn't happen. OH didn't get the message - but he does have another btl property so overall the % of repairs to income was lower, plus he has a pension so btl income only a small part.

Thanks for this. I will play around with the numbers a bit more to see if I can work it out. Just seems strange.

Did you mention the flat roof replacement in the text field where you can type additional information?

gallygirl

tigerspill wrote: »

Did you mention the flat roof replacement in the text field where you can type additional information?

No, I don't tell the !!!!!!s anything if I can help it .

flashg67

I too had this message last year, but as I was in the first year of renting out, I had incurred some high refurb costs in relation to the rental received up to that point. I put mine through with out it being queried further.
If you're happy you're claiming correctly, and your figures are correct, I'd be inclined to ignore the message & carry on

tigerspill

Thanks to all.

Crashy_Time

http://www.qdosvantage.com/let-property-campaign/