Reasonable miscellaneous costs for landlords tax returns

Reasonable miscellaneous costs for landlords tax returns

9:36 AM, 7th January 2014, About 8 years ago 36

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I’m just in the process of filling in a tax return for the first time and understand I can claim miscellaneous costs for such things as phone calls administration cost etc. As this seems to be a subjective calculation, (I’ve spent hours on the phone interviewing tenants and a similar amount of time in front of the computer keeping accounts up to date), could someone advise me, (rough estimate), as to what would be considered acceptable landlord miscellaneous costs and how much they have been able to claim for in the past? Reasonable miscellaneous costs for landlords tax returns

Thanks in advance.

Paul



Comments

by Romain Garcin

11:34 AM, 31st January 2014, About 8 years ago

Regarding car mileage, I believe that one caveat is that it must be measured from the location the letting business is run from.
If you manage your properties yourself from home, then that location is your home, but if the properties are managed by a letting agent then that location is his office.

HMRC's website suggest that there are 2 ways to account for car expenses: flat rate mileage or actual expenses. So it seems you are both correct.

IO makes a good point re. consequences of having an home office: One should be careful and seek advice before using a room exclusively for business purposes as that might trigger business rate liability. (as I understand it)

by Mark Alexander

14:26 PM, 31st January 2014, About 8 years ago

Reply to the comment left by "Romain " at "31/01/2014 - 11:34":

I disagree with the following statement ...

"If you manage your properties yourself from home, then that location is your home, but if the properties are managed by a letting agent then that location is his office."

The agent works for you, if you outsource rent collection etc. to an agent then you still run your business from your home as it is part of your business responsibility and to oversee the activities of your agent for which you remain accountable.
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by Romain Garcin

14:39 PM, 31st January 2014, About 8 years ago

Reply to the comment left by "Mark Alexander" at "31/01/2014 - 14:26":

I do not know how closely HMRC enforces it, but they seem to disagree:

"Where the rental business is administered from an office outside the landlord’s home, the cost of journeys between home and either a property they let or that office will not be allowable. But the cost of travel from their business office to and from the properties, and between the properties, may be allowable provided, as always, it was incurred wholly and exclusively for business purposes."

"Some landlords engage a letting agent to collect rents, organise services etc. Where a letting agent carries out all (or virtually all) the duties relating to the letting activity, it is likely that the rental business is being conducted through the agent. In such circumstances, the business 'base' is likely to be the agent's office, and travelling expenses from the taxpayer's home will not normally be allowable."

http://www.hmrc.gov.uk/manuals/pimmanual/pim2210.htm

by Mark Alexander

14:47 PM, 31st January 2014, About 8 years ago

Reply to the comment left by "Romain " at "31/01/2014 - 14:39":

I do not dispute this statement, if I had an office and that was my registered place of business as opposed to my home I could not claim travel expenses from home to office. Nevertheless, I could still have an office and employ one or more agents. I could then claim mileage to my properties or to my agents from my office. If I do not have an office then my home is my office.

Make sense?
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by Gary Nock

15:09 PM, 31st January 2014, About 8 years ago

And to confuse things even more if you let your own properties through your own letting agency, and the letting office is based at home, what do you claim?

by Mark Alexander

15:13 PM, 31st January 2014, About 8 years ago

Reply to the comment left by "Gary Nock" at "31/01/2014 - 15:09":

You claim mileage for visits to properties, accountants, solicitors, brokers, bank etc.

Simpulz 🙂
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