Self-assessment - rental expenses

Boleyn19

I have just submitted my self-assessment. We rent out my old home and always have repairs to offset against tax liability. This year was just the normal, nothing big but I entered a larger figure as a mistake. It was red flagged as being too much for the rental. So I entered the correct figure. 

Question: if we really did have legitimate major repairs eg roof replacement etc that would be more than the rent or a bathroom/kitchen that would be a lot - how could I enter that figure?

Dazed_and_C0nfused

Boleyn19 said:

I have just submitted my self-assessment. We rent out my old home and always have repairs to offset against tax liability. This year was just the normal, nothing big but I entered a larger figure as a mistake. It was red flagged as being too much for the rental. So I entered the correct figure. 

Question: if we really did have legitimate major repairs eg roof replacement etc that would be more than the rent or a bathroom/kitchen that would be a lot - how could I enter that figure?

What makes you think you couldn't enter that figure 🤔

Was the red flag not just a warning?

nigelholl2

Boleyn19 said:

I have just submitted my self-assessment. We rent out my old home and always have repairs to offset against tax liability. This year was just the normal, nothing big but I entered a larger figure as a mistake. It was red flagged as being too much for the rental. So I entered the correct figure. 

Question: if we really did have legitimate major repairs eg roof replacement etc that would be more than the rent or a bathroom/kitchen that would be a lot - how could I enter that figure?

I have done this several times over the last year for my wife's return.

Never had an issue, i keep a tax year spreadsheet running, detailing income & expenses, the expenses are broken down separately into the following sections, which is the sections you input the expenses, 1.Total rental income,  2.Rent, rates, insurance, ground rents, 3.Property repairs and maintenance, Legal, management and other professional fees.

On several occasions the expenses were greater than income, so no tax payable, and an actual loss to be carried forward to the next year.

Just remember the repairs need to be like for like, not an upgrade/improvement.

Regards

Nigel

Boleyn19

Dazed_and_C0nfused said:

Boleyn19 said:

I have just submitted my self-assessment. We rent out my old home and always have repairs to offset against tax liability. This year was just the normal, nothing big but I entered a larger figure as a mistake. It was red flagged as being too much for the rental. So I entered the correct figure. 

Question: if we really did have legitimate major repairs eg roof replacement etc that would be more than the rent or a bathroom/kitchen that would be a lot - how could I enter that figure?

What makes you think you couldn't enter that figure 🤔

Was the red flag not just a warning?

The box was bordered in red. I could not continue until it was sorted out.
A good few years ago we had so many repairs we carried forward a loss. So something changed.

Boleyn19

nigelholl2 said:

Boleyn19 said:

I have just submitted my self-assessment. We rent out my old home and always have repairs to offset against tax liability. This year was just the normal, nothing big but I entered a larger figure as a mistake. It was red flagged as being too much for the rental. So I entered the correct figure. 

Question: if we really did have legitimate major repairs eg roof replacement etc that would be more than the rent or a bathroom/kitchen that would be a lot - how could I enter that figure?

I have done this several times over the last year for my wife's return.

Never had an issue, i keep a tax year spreadsheet running, detailing income & expenses, the expenses are broken down separately into the following sections, which is the sections you input the expenses, 1.Total rental income,  2.Rent, rates, insurance, ground rents, 3.Property repairs and maintenance, Legal, management and other professional fees.

On several occasions the expenses were greater than income, so no tax payable, and an actual loss to be carried forward to the next year.

Just remember the repairs need to be like for like, not an upgrade/improvement.

Regards

Nigel

Hi Nigel, I’ve been doing the tax return on the house for over 25 years. One year we did carry forward a loss. But when I put in the wrong amount (£3k not £2k) for repairs and clicked continue the box was bordered red and the alert said that this figure was high for the rental income. So if the figure had been correct I’m not sure how I could proceed.