Rental tax expense?

ben100000

I'm doing my first tax return for my rental property, so the year is 6th april to 5th april but I have buildings insurance which ran from 31st july to 30th july. How do I log this?

macman

From the tax year in which you paid the premium.

AlexMac

An expert may reply, but I wouldn't waste a lot of time on this. No doubt there is guidance buried in gazillions of online pages of the HMRC guidance, but assuming you insure the building all year and pay annually in advance, why not just enter the July 2019 actual premium in your 2019-20 return?  After all, that was your "cash accounting method"  payment during 2019-20?

That's what I'd do, and it lets you answer no to question #20; (does) "this Tax Return contains provisional or estimated figures?"

But does it reallymatter?  I've been doing self assessment proerty income returns for over 20 years and while I'm meticulously honest and file receipts, I've never once been challenged or audited on my pittance of an income or my modest added tax.

Surely the taxman's got more to do chasing all the "cronies" making millions on hookey PPE contracts awarded by their mates in Government;
https://www.mailplus.co.uk/edition/comment/37302/the-damning-report-that-reveals-a-cynical-brazen-cronyism

ben100000

Sorry not sure if I was clear enough I paid it in one whole annual payment.

Hasbeen

ben100000 said:

I'm doing my first tax return for my rental property, so the year is 6th april to 5th april but I have buildings insurance which ran from 31st july to 30th july. How do I log this?

Do you actually have to log it?

I thought to make it simple the HMRC let you choose to take the £1000 property allowance for landlords instead?

macman

So, like I said, it's an allowable expense in the tax year in which you paid it. Assuming we are talking about your 19/20 return, you should use the premium you paid in or around July 2019. 

Hasbeen

macman said:

So, like I said, it's an allowable expense in the tax year in which you paid it. Assuming we are talking about your 19/20 return, you should use the premium you paid in or around July 2019. 

So what use is the £1000 allowable expence that is available to landlords.?

How does it work?

[Deleted User]

Hasbeen said:

macman said:

So, like I said, it's an allowable expense in the tax year in which you paid it. Assuming we are talking about your 19/20 return, you should use the premium you paid in or around July 2019. 

So what use is the £1000 allowable expence that is available to landlords.?

How does it work?

So instead of putting down each expense like gas cert, insurance, professional fees, replacements etc you can just bung down £1000. Sometimes that works ( like with me as I dont use managing agents ) and sometimes its better to put down the actual expense. 

These do not include mortgage interest which isnt an expense anymore but merely a 20% of the cost applied as a tax credit 

scottishblondie

You need to Hasbeen said:

macman said:

So, like I said, it's an allowable expense in the tax year in which you paid it. Assuming we are talking about your 19/20 return, you should use the premium you paid in or around July 2019. 

So what use is the £1000 allowable expence that is available to landlords.?

How does it work?

You need to choose which is more appropriate for your situation.  If your allowable expenses exceed £1000, then there is no point in taking the simple option as it will cost you more money.

Hasbeen

Thanks both.
So if ops expences where £500 use the allowance. But if £1500 then put all in as expences. Thanks.

[Deleted User]

Hasbeen said:

Thanks both.
So if ops expences where £500 use the allowance. But if £1500 then put all in as expences. Thanks.

Exactly that ! But if using real expenses make sure you only claim what you are properly allowed to claim, keep meticulous records and you cannot go wrong