Property Letting - allowable expenses

pinklady21

Hello
Wonder if anyone can give me a sanity check on the allowable letting expenses I am including in my SA tax return for 2016/17.

I understand that the 10% Wear and Tear allowance is no longer permitted.
I am a bit worried I might have missed something, or included something that I should not.....

The list of expenses against the gross rent includes:

Mortgage Interest
Insurance
Repairs
Travel Expenses for visits to property
Stationery and Postage
Telephone calls
Utility bills / council tax during void periods
Replacement of furnishings
Letting agent fees
Advertising fees

Please let me know if I have missed anything.
Thank you!

00ec25

https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income

Sale2018

Ground rent if your property is leasehold.

Travel expenses, my accountant said I can't deduct these as this is only for Ltd companies???.

00ec25

Sale2018 wrote: »

Travel expenses, my accountant said I can't deduct these as this is only for Ltd companies???.

your accountant is wrong, or being lazy not wanting to explain it

Travel expenses are a target for HMRC so if claimed then expect to be challenged to prove that the cost was wholly and necessarily incurred on the property related business only and did not involve any other "activity" at the same time.

You can't go shopping whilst visiting the property and you can't claim the mileage if you were simply stopping off there on the way to somewhere else as the purpose of the journey was not wholly business related.

Sale2018

Thanks for the clarification. In the past 7 years my accountant has not allowed me to deduct travel expenses. :mad:

Can I ask what records do you keep for these travel expenses, I sure will press my accountant for a better explaination.

As for the mortgage interest, isn't that being phased out??.

Thanks again.

chrismac1

To give a specific example, a client of mine (I am an accountant) had a chalet in Chamonix. She made 5 or so trips there a year.

Two were on her own and on each she had a lot of appointments with property agents, cleaners, repairers and so on. No skiing. In my view no ancillary purpose, so we claimed all the expenses relating to these trips.

The other trips were for her whole family and involved skiing. Clear ancillary purpose, so not claimed as business expense.

00ec25

Sale2018 wrote: »

Thanks for the clarification. In the past 7 years my accountant has not allowed me to deduct travel expenses. :mad:

Can I ask what records do you keep for these travel expenses, I sure will press my accountant for a better explaination.

it is not as simple as a tick list. As chrismac1 says, you have to be able to explain why you went there and be convincing.

Sale2018 wrote: »

As for the mortgage interest, isn't that being phased out??.

Thanks again.

no they are not being "phased out", the rules are however different wef April 2017

https://www.gov.uk/guidance/changes-to-tax-relief-for-residential-landlords-how-its-worked-out-including-case-studies

Mahsroh

Personally, I've never claimed any travel expenses, even though there is an entitlement to do so.


As others have said, it's hard to prove, likely to be challenged and more often than not is part of a "multi-purpose" trip.

Emilybutt12

Hi,

I was wondering whether anyone knows whether the monthly cost for life insurance is an allowable expense? I am hoping to take out a decreasing term policy covering my mortgage only, so nothing personal.

Many thanks

Pennywise

Emilybutt12 wrote: »

Hi,

I was wondering whether anyone knows whether the monthly cost for life insurance is an allowable expense? I am hoping to take out a decreasing term policy covering my mortgage only, so nothing personal.

Many thanks

No, life insurance isn't allowable.

AnotherJoe

Emilybutt12 wrote: »

Hi,

I was wondering whether anyone knows whether the monthly cost for life insurance is an allowable expense? I am hoping to take out a decreasing term policy covering my mortgage only, so nothing personal.

Many thanks

How is life insurance not personal?