Buy-to-let repairs – tax deductable if I do it myself?

apollostarbuck1975

I own two flats that I rent out separate to my day job. Sometimes I get decorators/repairmen to do the necessary upkeep work on the flats, but then sometimes I get stuck in and repair a leaky tap or cut back the overgrown garden for instance. I just wanted to know if I can claim this work done personally as a maintence expense. Or can you only claim if someone professionally does it for you?


And if I can claim for my time and labour (I certainly claim already for all materials bought), what is 'the going rate' for work carried out by myself?


Many thanks

chrismac1

Yes, you can charge this at £10,000 per hour. So if you do 5 hours that is £50,000 of rental expenses.


But then, of course, you need to fill out the self-employment pages and the £50,000 will need to go in there as income.


The net tax effect is either nil or negative, and there will be extra NI due. But go for it!

apollostarbuck1975

Wow. You actually took time out in your day to write that useless response... Amazing.

BoGoF

It's not useless at all.....it sums the position up

nick74

apollostarbuck1975 wrote: »

Wow. You actually took time out in your day to write that useless response... Amazing.

It is completely correct though. Pay yourself, say, £20 for changing a washer, and you are neither £20 better off nor £20 worse off. You have not incurred a cost, therefore there is nothing to claim.

le_loup

apollostarbuck1975 wrote: »

Wow. You actually took time out in your day to write that useless response... Amazing.

I think you need to read it - before criticising.

Pennywise

apollostarbuck1975 wrote: »

Wow. You actually took time out in your day to write that useless response... Amazing.

How is it useless. It's actually the correct answer. Just because it's not what you wanted to hear doesn't make it useless.

apollostarbuck1975

Hi all
My apologies all round. It has been a long day and when I read that joke figure of £50k it threw me and I missed the point. I get it now – basically what I ‘pay’ myself gets recorded as self-employed income so the tax benefit of the one is deleted by the other, so no gain. Probably means I become less reluctant to get a contractor in as at least I get the tax-reduction benefits that way (but of course have to pay out).
Anyway. You’ve answered my question.
Thank you.

pramsay13

You cannot pay yourself but you can claim the expenses for materials / equipment used in the repairs / maintenance provided they are used wholly and exclusively in the purpose of renting out the property.

apollostarbuck1975

Thank you!
(One last one: If I remortgage and add the arrangement fee to the mortgage, is this cost tax deductible in the year of the remortgage?).

00ec25

apollostarbuck1975 wrote: »

Thank you!
(One last one: If I remortgage and add the arrangement fee to the mortgage, is this cost tax deductible in the year of the remortgage?).

yes, read
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2105

can I suggest you read the rest of the manual to learn the answers you have not asked yet
https://www.gov.uk/hmrc-internal-manuals/property-income-manual