Can I claim tax relief for paying utility bills?

by LVW4

9:04 AM, 28th August 2014
About 4 years ago

Can I claim tax relief for paying utility bills?

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Can I claim tax relief for paying utility bills?

Can I claim tax relief for paying utility bills?

I can’t find if this has been asked before.

If I agree to let a property where the rent includes the utility bills, are those bills an allowable expense for tax purposes?

Thanks

Lou Valdini



Comments

Mark Alexander

9:05 AM, 28th August 2014
About 4 years ago

Hi Lou

Yes you can 🙂
.

LVW4

10:18 AM, 28th August 2014
About 4 years ago

Thanks Mark. I wish all property answers were that simple!

Mark Alexander

12:04 PM, 28th August 2014
About 4 years ago

Reply to the comment left by "Lou Valdini" at "28/08/2014 - 10:18":

LOL - I wish all the questions and issues we face as landlords were this simple too! 🙂
.

Ian Ringrose

12:40 PM, 28th August 2014
About 4 years ago

But do you have to detect them from the rent before working out the 10% “wear and tear” relief for furnished properties?

Mark Alexander

12:44 PM, 28th August 2014
About 4 years ago

Reply to the comment left by "Ian Ringrose" at "28/08/2014 - 12:40":

Yes I believe so, if in doubt check with an accountant, here's a link to the Property118 member profile of mine >>> http://www.property118.com/member/?id=452
.

matchmade

13:01 PM, 28th August 2014
About 4 years ago

Reply to the comment left by "Ian Ringrose" at "28/08/2014 - 12:40":

I wouldn't have thought so: how can gas and electricity bills count as "wear and tear" on furnished property? The 10% allowance is meant to compensate landlords with furnished property for the cost of replacing worn-out furniture etc from time to time.

The utility bills are a business cost, so if you are paying them and being compensated by the tenant alongside their rent, you should be able to claim a deduction. I ask my tenants to make separate rent and utility payments, and ignore the utility income and costs in my accounts as they always cancel each other out.

Reader

14:48 PM, 28th August 2014
About 4 years ago

The Inland Revenue Web site will supply you with the answers. As I use it in your circumstances, utilities used exclusively for the business are a deductible expense. If you claim wear and tear for furnished residential accommodation I think it says that it will be net of your utility costs. If you operate a service charge the role of that charge in the above calculation is beyond my understanding. If you charge for services it could be complex and require experienced guidance.


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