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Jointly owned property

If you and some other person (not your spouse) receive rental income the rents received are taxable on the owner of the property. You cannot be the legal owner of the property and say that someone else receives the rental income. You do not need to own the property on a 50:50 basis but the […]

May 15th, 2014|

What’s the difference between furnished and unfurnished property and does it matter?

This may seem like a simple question but in order to treat your letting as furnished you must provide more than just the basic cooker, fridge, carpet and curtains. As a guide a furnished property is defined as a property that you could just walk into and live in. So items of furniture like chairs […]

May 15th, 2014|

What counts as an expense against my income?

Any revenue expense can be set against the rents received from your property. All legitimate expenses should be properly recorded and where appropriate you should obtain a receipt. The most common expenses are

Mortgage interest
Council tax or rates
Repairs and decoration

But there are other expenses that most landlords incur that also can be claimed including the costs […]

May 15th, 2014|

Revenue or capital what’s the difference?

Not all monies spent on the property are an allowable expense (revenue). Some items are in fact capital. If it is a revenue expense the monies spent are set against any income received. If it is a capital expense the monies spent are deducted in order to calculate if there is any profit which may […]

May 15th, 2014|

What can I claim for?

Claiming all the expenses you are allowed will help reduce the income HMRC can charge tax on or increase your losses for the year so that they can be used in the future. Losses can be carried forward until you start to make a profit on your income – there is no time limit. But […]

May 15th, 2014|

Help for landlords

Unless you have the time (and the inclination) to spend researching what you can and cannot claim for we find that a number of landlords are either claiming for the wrong expense or even worse not claiming them at all. It may be through lack of knowledge or fear of HMRC that leads some to […]

May 15th, 2014|

Don’t forget to tell HMRC if you become a landlord

Whether you have one property in your portfolio or many you need to tell HM Revenue & Customs about it even if you are not making a profit. Failing to tell HMRC can be costly with penalties and interest charges not to mention the costs of putting things right. If you haven’t told HMRC and […]

May 15th, 2014|

Thinking of working further afield and letting your property?

It is increasingly common for individuals to take up employment in a different location from where their family home is. If your home will be vacant you may be considering letting it. Not only will this bring in an income but also help protect your property while you are away.

Normally income received from letting your […]

May 15th, 2014|

What if my income is more than £4250 per year? Can I still claim rent-a-room relief?

The simple answer to this is yes, however, you will pay tax on the rent over £4250 and you cannot claim any expenses against rents received over £4250.00.

You can still disclose your rents in the normal way and not claim rent-a-room relief, it may be more beneficial to set off expenses actually incurred, expenses are […]

May 15th, 2014|

Rent A Room

Some people rent space in their homes to other individuals. Normally all income from letting including in your own home, needs to be reported to HM Revenue & Customs. However, the Revenue recognise that not all income received will be chargeable once all allowable expenses have been deducted – hence rent-a-room relief.

As a general rule […]

May 15th, 2014|