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    • dllive
    • By dllive 9th Nov 18, 11:17 AM
    • 391Posts
    • 28Thanks
    dllive
    Are these allowable landlord expenses?
    • #1
    • 9th Nov 18, 11:17 AM
    Are these allowable landlord expenses? 9th Nov 18 at 11:17 AM
    My tenant has asked for new curtains before they move in (the existing curtains are a bit grubby). Im happy to buy new curtains, but would this be an allowable expense to offset against tax?

    Also, Ive noticed there is some damp in the base of the chimney in the lounge. I suspect this is because some pointing is needed as there are weeds growing out of the chimney above the roof line! Would this be considered a capital expense?

    Thanks
Page 1
    • SmashedAvacado
    • By SmashedAvacado 9th Nov 18, 1:40 PM
    • 456 Posts
    • 463 Thanks
    SmashedAvacado
    • #2
    • 9th Nov 18, 1:40 PM
    • #2
    • 9th Nov 18, 1:40 PM
    My view:

    Curtains - replacement provided that they are not better than what you had.

    Damp - this is maintenance unless you are improving the property. If the cause of the damp is the weeds, then this is pretty clearly maintenance. If its more inherent in the property then there could be an argument that its a capital expense
    • dllive
    • By dllive 9th Nov 18, 1:49 PM
    • 391 Posts
    • 28 Thanks
    dllive
    • #3
    • 9th Nov 18, 1:49 PM
    • #3
    • 9th Nov 18, 1:49 PM
    Hmmm, there are 2 damp issues which - I *think* by looking at the outside of the property - is coming from lack of pointing on chimney stack and 2 patches of cracked render. Maybe I could claim a portion of that?
    Is there anyone that can give me a definitive answer? (IE: Can I contact HMRC and ask them?)
    • SmashedAvacado
    • By SmashedAvacado 9th Nov 18, 3:24 PM
    • 456 Posts
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    SmashedAvacado
    • #4
    • 9th Nov 18, 3:24 PM
    • #4
    • 9th Nov 18, 3:24 PM
    Both damp issues sound like maintenance not improvement.
    • dllive
    • By dllive 9th Nov 18, 3:42 PM
    • 391 Posts
    • 28 Thanks
    dllive
    • #5
    • 9th Nov 18, 3:42 PM
    • #5
    • 9th Nov 18, 3:42 PM
    Thanks. This sounds promising. Good news is its tax deductible... bad news is it will be expensive. (I guess about £1k, which is just less than 2 months rental income).
    • agrinnall
    • By agrinnall 9th Nov 18, 3:44 PM
    • 21,418 Posts
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    agrinnall
    • #6
    • 9th Nov 18, 3:44 PM
    • #6
    • 9th Nov 18, 3:44 PM
    Is there anyone that can give me a definitive answer?
    Originally posted by dllive

    Does it really matter? I hope for the sake of your tenants and to keep your property in good order you are going to fix the damp anyway, so why not just claim it on your next return, and HMRC will either allow it or not.
    • dllive
    • By dllive 9th Nov 18, 3:49 PM
    • 391 Posts
    • 28 Thanks
    dllive
    • #7
    • 9th Nov 18, 3:49 PM
    • #7
    • 9th Nov 18, 3:49 PM
    Does it really matter? I hope for the sake of your tenants and to keep your property in good order you are going to fix the damp anyway, so why not just claim it on your next return, and HMRC will either allow it or not.
    Originally posted by agrinnall
    Yes, I will fix the damp issue regardless. My question is whether I can add this as an expense on my self assessment, either wholly or proportionally. I dont want to trigger an investigation or even attract attention from HMRC when Im legitimately trying to do the right thing.
    • silvercar
    • By silvercar 9th Nov 18, 4:11 PM
    • 38,136 Posts
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    silvercar
    • #8
    • 9th Nov 18, 4:11 PM
    • #8
    • 9th Nov 18, 4:11 PM
    Yes, I will fix the damp issue regardless. My question is whether I can add this as an expense on my self assessment, either wholly or proportionally. I dont want to trigger an investigation or even attract attention from HMRC when Im legitimately trying to do the right thing.
    Originally posted by dllive
    You only enter a total expenses figure on your tax return; there are a couple of sub categories (from memory insurance, interest and fees). Otherwise it is just general expenses - in there will be all sorts of things without any individual identification.

    You obviously need to justify it if you are inspected, not no-one wastes time going through each item. I would say it is clearly maintenance.
    • pramsay13
    • By pramsay13 9th Nov 18, 4:21 PM
    • 547 Posts
    • 981 Thanks
    pramsay13
    • #9
    • 9th Nov 18, 4:21 PM
    • #9
    • 9th Nov 18, 4:21 PM
    Other common types of expenses you can deduct if you pay for them yourself are:

    general maintenance and repairs to the property, but not improvements (such as replacing a laminate kitchen worktop with a granite worktop)
    from https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income

    You have described maintenance issues, nothing about your description sounds like capital improvement.
    • ProDave
    • By ProDave 9th Nov 18, 4:52 PM
    • 1,118 Posts
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    ProDave
    Interestingly on my last tax return I had the option of claiming actual allowable expenses, OR ticking a box to claim a flat rate of £1000

    Since my actual expenses were less than £1000, I chose the £1000 option.

    (I don't have any form of mortgage so my expenses are only insurance and maintenance)

    Interestingly as this property is jointly owned, we each declare half the income so we each had a £1000 box to tick. Happy days.

    I don't seem to see much discussion of this flat rate £1000 option so can only assume most landlords expenses are > £1000?
    • AlexMac
    • By AlexMac 9th Nov 18, 5:02 PM
    • 2,187 Posts
    • 1,918 Thanks
    AlexMac
    Even without consulting the myriad advice on the HMRC site, I'm 100% sure it's routine maintenence, not Capital, thus ofsettable.

    And as regards your self assessment return; given that the taxperson only asks for summary numbers, they won't know, nor care about the detail. I only have to fill in a five-line summary analysis of expenditure; five numbers, a bit on loan interest and a total income...

    And as for triggering an investigation, I've been filling in returns for over 20 years as a small-time amateur landlord, and there has never been a hint of a question or audit; even when my (impeccably honest) return of allowable expenses has varied from the previous year by several grand. So chill.
    • dllive
    • By dllive 10th Nov 18, 10:32 AM
    • 391 Posts
    • 28 Thanks
    dllive
    Interestingly on my last tax return I had the option of claiming actual allowable expenses, OR ticking a box to claim a flat rate of £1000

    Since my actual expenses were less than £1000, I chose the £1000 option.

    (I don't have any form of mortgage so my expenses are only insurance and maintenance)

    Interestingly as this property is jointly owned, we each declare half the income so we each had a £1000 box to tick. Happy days.

    I don't seem to see much discussion of this flat rate £1000 option so can only assume most landlords expenses are > £1000?
    Originally posted by ProDave

    Interesting. Do you think that £1000 option is the equivalent of claiming the flat £10 per month if youre self employed and working from home? In other words, you dont have to provide receipts.

    Ive been reading the HMRC's guidance and this may be what you mean: https://www.gov.uk/renting-out-a-property/paying-tax . "... The first £1,000 of your income from property rental is tax-free. This is your ‘property allowance’." ?
    • ProDave
    • By ProDave 10th Nov 18, 11:48 AM
    • 1,118 Posts
    • 1,353 Thanks
    ProDave
    Interesting. Do you think that £1000 option is the equivalent of claiming the flat £10 per month if youre self employed and working from home? In other words, you dont have to provide receipts.

    Ive been reading the HMRC's guidance and this may be what you mean: https://www.gov.uk/renting-out-a-property/paying-tax . "... The first £1,000 of your income from property rental is tax-free. This is your ‘property allowance’." ?
    Originally posted by dllive
    I do a paper tax return so don't have it to refer to, it has been posted long ago.

    I recall I could either claim all the alowable expenses individually listed in a few categories, or tick the box to claim £1000 which is what I did. It does sound line in effect the first £1000 tax free thing.
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