First time landlord - questions on tax

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    First time landlord - questions on tax

    Hi there,

    I am recently a first time landlord. I have everything covered but just have some questions regarding tax on rental income:

    - I know that i need to keep invoices for all the expenses allowable and that my tax liability can be calculated on a cash basis (since total gross rent does not exceed £150k). I pay a service charge on the first of the month of £100 every month. Since i let out my property halfway in the month, when does the service charge start being taken into account as expenses allowable, from the first payment prior to when the tenancy started or after? I had previous lived in the property as my residence. I moved out a month before the tenancy started.

    - I pay the service charge to the guy who manages the building (he lives and owns one of the flats in the building as well). How do i get proof for payment of this service charge in case HMRC ask? There is only financial accounts available for the building which shows total service charge receipts but its the total not just from me.

    - Can i claim travel expense, if so how do I keep a record for this? I travel by car if there are any issues with the property. What are the rules around this, i heard its a certain cost per mile driven? How to keep records?

    - Can i use invoices as proof, or does it have to be receipts?

    That is all for now.

    Many thanks for your input in advance.

    You can count the first payment made after your date of moving out as "the beginning of service charges ".

    If you open a separate bank account for rent money coming in and pay out expenses by cheque, the bank statements will serve as your proof of your payments. You can claim 45p per mile travel expense to visit the property and pay yourself by cheque.


      Its a bit late to do it that way as i used one account to pay rent in and another account (credit card) to pay for some of the expenses.

      Anyone else can answer my questions?



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