Self Assessment Tax Return - Tax Breaks

[High_Expect]

Fellow PPrune’ers

I'm sure there are plenty of us out there in the same situation but I though it would be helpful if we could compile a list of known tax breaks for those of us who live on the Patch and rent out our only home elsewhere in the country.

Clearly anything listed here can't be taken as fact and individual circumstances vary massively so be warned before claiming anything/everything listed.

My ten pence worth -

Even if you fall under the cut-off for doing a tax return (I'm talking additional income on top of PAYE tax deducted salary) - less than £10,000 income per year before deductions or £2,500 after deductions, it may still be worth you doing a return if you are technically making a loss ie. your rent doesn't cover your interest repayments. When eventually you do start making a profit you can offset it against losses for the previous ? number of years.

I've also heard that if you self manage your property you can claim for a BT phone line, a PC and two return journeys to your property for inspections (for which you don’t need receipts) does anyone know any details?

[BEagle]

Surely all you need to ensure is that the rent you charge the occupant is no less than whatever you're charged for living in your military council house?

Back in the 1970s when money was much tighter, 4 of us rented a house from a Sqn Ldr who had been posted to Germany. When he was promoted to Wg Cdr, he told us that he intended to put up the rent; however, we told him that it wasn't very fair to expect us to pay for his promotion! A little research revealed that he was doing quite nicely out of the 4 of us since he wasn't being charged much for his OMQ in Germany..... Having called his bluff, he agreed not to increase the rent!

I'd be wary of posting any "A mate told me I could claim" stories - they cannot be verified and may queer the pitch for others.

[floppyjock]

I rented my house out when I lived in Germany.

I found my local tax office very helpfull, just go and speak to them.

Basicaly you need to fill in a tax return if you make money from a property ie renting it out. There is no list of things you can claim for. But the tax office did tell me that any money paid out by me to enable me to rent the property can be put down as an expence and off set against the tax due on the profit made. That includes thing such as improvements ie curtains, etc I dont think a new conservatory would count though. If you rent it out through an agency. If I remember correctly you can claim that back as well
Also check with your mortgage provider as it can effect the payments. But I would recommend your first stop is the tax office. They even helped me fill in the form one year.

Floppy

[NRU74]

High_Expect
Google's still your friend.
Go to the Directgov site follow the links and there's a fairly noddy guide.It's reasonably straightforward if your rental income received is less than £15000.On furnished lettings for 'wear and tear' you can claim either 10% of the net rent or 'renewals'
Did mine on Friday !

[tommee_hawk]

I've been out of the house rental game for a couple of years but I used to claim the following:

Management Agency Fees
10% of wear & tear (or replacement costs for carpets etc)
Cost of visits (fuel etc)
Stationery and postage
Mortgage (treat it as a business, then you can claim this as an expense)

Basically, anything it cost you to run your rental you can claim back - it's possible to pay no tax, and even carry a loss forward.

The one thing you do have to be aware of is potential future liability for Capital Gains - Inland Revenue tried to get me on that with a £20000 payback, plus a similar sized "fine". Just be aware - but it only cost me £385 for a tax consultant to fix the problem!

Good luck!