First time self assessment for property income

Stormy_Sky

Hi, sorry if this question has already been asked.

It's my first time doing a self assessment for property income so just getting my head round all the questions etc.

I have a jointly owned property so obviously we have divided the income and expenses.

My income would be below £5,000 before expenses due to only getting income from October – April.

The question I have is I have expenses regarding letting management, roof repairs, insurance and boiler replacement.

Do I separate my expenses into the following categories - 

Rent, rates, insurance, ground rents

Property repairs and maintenance

Legal, management and other professional fees

 

Or am I able to add all of my expenses up and put one single amount somewhere on my self assessment?

 

Dazed_and_C0nfused

Stormy_Sky said:

Hi, sorry if this question has already been asked.

It's my first time doing a self assessment for property income so just getting my head round all the questions etc.

I have a jointly owned property so obviously we have divided the income and expenses.

My income would be below £5,000 before expenses due to only getting income from October – April.

The question I have is I have expenses regarding letting management, roof repairs, insurance and boiler replacement.

Do I separate my expenses into the following categories - 

Rent, rates, insurance, ground rents

Property repairs and maintenance

Legal, management and other professional fees

 

Or am I able to add all of my expenses up and put one single amount somewhere on my self assessment?

 

I don't think there is a single box option for the land and property pages.

DRS1

Under MTD it seems you can do Consolidated Expenses where your gross rental income is under £90k but that was news to me.  Under self assessment I would always split the expenses out into those boxes.  Just to mention that there is also a box for replacement of domestic items and I am not sure if the boiler comes under that or repairs and maintenance.  You may want to check.

I think there may also be a special box for things like the Gas Safety Certificate.

mlz1413

Lots of hmrc help on this.  YouTube and webinars.

Plus if you click the "?" next to each box it gives loads of help

Stormy_Sky

@Dazed_and_C0nfused , @DRS1 & @mlz1413

I really appreciate all your help, thank you!   

Sue_S

If your expenses amount to less than £1K you can claim property income allowance of £1K thereby negating the need to list all the expenses.

dinosaur66

as your income is 5K and one property

on a self assement form you can still do it by just keeping paper and pen records keeping and do not have to do MTD depending on what other jobs and income you have 

just keep records monthly

april 1st to march 31st is much easier to do for tax year and hmrc will not mind   

50k and under and a simple 10 min landlord tax return is all that is required

20 mins as it will be your first time

mtd is required if your total income is above 50k combined  -bar interest from savings which is not counted towards your total albeit you are taxed on it if you earn more than 1k savings

management fees go in one section along with legal fees just combine the total figure

your roof repair/boiler replacement/ any repairs go in as one total figure

i see someone said boiler replacement comes seperate

if it does i never new that, i repalced a rental property boiler last year and just put it under maintence costs and have put in boiler costs for 10 years plus i have been a landlord

write down and keep receipts time and dates of repairs and costs/ i take photos before and after any job i have done or i do myself and print them off.

if i do not get a receipt/ and a lot of trades just like cash/ i just put down i paid cash /who did the job and still claim.

insurance i cannnot remember if it has its own section on the tax return depite me doing it countless times 

i think i combine it with maintenence but until april comes around and i am filling my yearly hmrc return i cant remember

section 44 of your landlord return will be where you write down your total interest you paid on your mortgage for that tax year and hmrc do the calculation and give you back your 20% tax relief

but from memory a simple landlord tax return for a single rental property is about 5 figures in boxes and 10 ticks to say you do not have foreign property / do not have a student let / etc etc

DRS1

dinosaur66 said:

your roof repair/boiler replacement/ any repairs go in as one total figure

i see someone said boiler replacement comes seperate

if it does i never new that, i repalced a rental property boiler last year and just put it under maintence costs and have put in boiler costs for 10 years plus i have been a landlord

It was me that said check if a boiler was covered by the replacement of domestic items box.  So I just checked and it isn't.

Things that are covered are washing machines fridges freezers etc.

see here
PIM3210 - Furnished lettings: Replacement of domestic items relief: 2016-17 onwards - HMRC internal manual - GOV.UK