Property tax allowance

dllive

Hi

Ive started renting a property to a tenant. If I claim the £1k tax property allowance, does that mean I cant claim expenses (insurance, maintenance work etc...)?

If its one or the other, do landlords usually wait til the end of the tax year and work out which is greater (expenses or tax allowance) and claim whichever is greater?

Im also self employed. So can I claim £1k Trading allowance; £1k Property allowance; AND £1k allowance on interest from savings accounts?

Thanks

pramsay13

Yes, it's either the property allowance or expenses, you can't claim both.
You cannot submit your tax return until the year ends and you have your figures anyway but you should have an idea if the property allowance or actual expenses is greater.
And yes, using one allowance doesn't exclude you from using other ones.

00ec25

if you do not know years in advance whether your expenses will be more or less than £1,000 then you should not be letting a property as you have no idea how to manage your finances.

have you read the rules?
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

pramsay13

00ec25 wrote: »

if you do not know years in advance whether your expenses will be more or less than £1,000 then you should not be letting a property as you have no idea how to manage your finances.

How do you plan years in advance for a boiler needing replaced, or a roof repair etc.?

AnotherJoe

pramsay13 wrote: »

How do you plan years in advance for a boiler needing replaced, or a roof repair etc.?

If you don't have the cash to cope with irregular larger expenses then you save for them so that you build up such a contingency fund.

00ec25

dllive wrote: »

Hi

Ive started renting a property to a tenant. If I claim the £1k tax property allowance, does that mean I cant claim expenses (insurance, maintenance work etc...)? read the instructions, they tell you how it works

If its one or the other, do landlords usually wait til the end of the tax year and work out which is greater (expenses or tax allowance) and claim whichever is greater? the allowance became available for the first time in 17/18 so this is the first tax year anyone has had the chance to claim them. Nonetheless, if you do not already know what your standard level of expenses is for the property each year, you need help from someone who knows how to run a business

Im also self employed. So can I claim £1k Trading allowance; yes

£1k Property allowance; AND £1k allowance on interest from savings accounts? these two have nothing to do with being self employed. Either you have letting income and/or interest or you don't.

Thanks

ok lets start again - see above

if your normal expenditure is less than £1,000 each year then you already know that.

if you incur large one off repairs such as you mention in any one given year then you'll know that when it happens, you don't wait to the tax year end to work out if you spent > £1k

00ec25

pramsay13 wrote: »

How do you plan years in advance for a boiler needing replaced, or a roof repair etc.?

you set a budget for your business. It may not happen in the exact year you forecast, but you can surely expect to have to spend £X (large) at some point in any given 10 year budget cycle and you won't be a landlord if you were working to less than 10 years as that is just gambling

chrismac1

What's wrong with gambling? It's paid off for thousands of UK folks in the last 20 years due to our crazy setup of never building enough houses. However, admittedly right now with the Brexit mess and falling London prices is probably not a great time to bet the house on it.