Tax allowance using my home as an office for my BTL's

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Tax allowance using my home as an office for my BTL's

    Hi guys newbie here, been a landlord over 10 years with 3 BTL properties learnt a few things or two over the years and have slowly perfected the skill of using as much of my tax allowance where possible almost! , as we draw closer to the deadline of the 31st Jan, wanted to dot the i's and cross the T's before i hand in my self assessment and was wondering can i claim for office expense as i use my study/office room at home to do a lot of the A to Z work on running 3 of my BTL's. Managed to find the following from the HMRC
    3. Working from home


    Calculate your allowable expenses using a flat rate based on the hours you work from home each month.

    This means you don’t have to work out the proportion of personal and business use for your home, eg how much of your utility bills are for business.

    The flat rate doesn’t include telephone or internet expenses. You can claim the business proportion of these bills by working out the actual costs.

    You can only use simplified expenses if you work for 25 hours or more a month from home.
    25 to 50 £10
    51 to 100 £18
    101 and more £26
    but dont know if this applies to me?? im aware i can claim for stationary paper/printer ink/ phone calls/ internet costs at a % etc etc. i would say i use the office around on average 20 odd hours per month for BTL's purposes, any help would be appreciated .

    many thanks

    https://www.property118.com/claiming...ndlords/29305/
    Last edited by UH-lettings; 24-12-2017, 17:42 PM. Reason: just came across the property118 website.... how accurate is this info??

    #2
    Do you have a full time job some paying monthly salary ?

    How are you going to prove you are doing 20 hours per month work in your office ?

    Do you buy a time card stamping machine and clock in/out every time you need to work ?

    For most months I think you only spend 15 minutes time to check the rent money has been paid on the bank statement

    The danger of claiming an office in your home, is that you may not get full exemption to capital against tax for principal residence after you sell your home.

    Comment


      #3
      Also you may have to pay business rates for that part of the building.

      Comment


        #4
        Hi Gordon, im currently employed full time and no i cant prove in terms of actual hours spent, just trying to find ways of squeezing as much as i can out of the tax man with regards to allowance, i stumbled across two web sites both saying it is possible to claim the basic but not sure how credible/accurate this information is ??

        http://landlordmoneysaving.com/home-...for-landlords/
        https://www.property118.com/claiming...ndlords/29305/

        Comment


          #5
          Many accountants suggest a claim of £208 (£4 a week) will pass without comment.
          They may ask you to confirm you do "substantive amounts" of work (i.e. more than open post or take messages) - which most landlords who compile data for a tax return probably do.

          I do that and it's never been queried.
          The claim doesn't have any impact on business rates or proceeds on disposal, because the claim is simply to offset the use of the facility and its resources, there's no specific proportion of the building set aside.

          There's a school of thought that argues that the saving isn't worth making the claim for.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            I also charge £18 per month, although if I added in the time I spend on forums I could probably claim the £26!

            Comment


              #7
              thanks everyone for your input

              Comment


                #8
                Is that £4 a week per BTL you have, or total please?

                Comment


                  #9
                  20 hours per month on paperwork/admin for 3 properties?
                  "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

                  What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

                  Comment


                    #10
                    My accountant advised the £208 pa as per the guidance and I've been claiming it for years. (Must be due an increase now to keep up with inflation?)

                    Comment


                      #11
                      Boletus where would I put this claim for £208 on my form? I have two buy to lets i spend so much of my time sorting out my tenants (2 complex families with money problems and relationship breakdowns) i feel like a social worker 😩

                      Comment


                        #12
                        Mine goes under legal, management and other professional fees.

                        Comment

                        Latest Activity

                        Collapse

                        • Can you claim expenses for furniture ?
                          craig2222
                          I am renting my house furnished.Can I claim the expenses on my tax return whatever I spend on furniture ? Thanks...
                          05-10-2018, 20:16 PM
                        • Reply to Can you claim expenses for furniture ?
                          tatemono
                          According to the guide I linked to, they are:...
                          18-10-2018, 09:15 AM
                        • Boiler repair before first tenancy
                          Pandy7370
                          Hi,

                          We have recently relocated to a new main residence and have let out our previous house/home.

                          The boiler in the house was old and had become very temperamental, and whilst we put up with luke warm water intermittently when we lived there it clearly wouldn’t be acceptable...
                          17-10-2018, 15:43 PM
                        • Reply to Boiler repair before first tenancy
                          jpkeates
                          Strictly speaking it fails the test.

                          What I would do personally is claim it and deduct £200 for the use you had of it. You date the expense the first day of the first tenancy and hope nobody even looks at it.

                          Don’t mention the deduction, just put the figure on the return....
                          17-10-2018, 17:25 PM
                        • Reply to Can you claim expenses for furniture ?
                          DPT57
                          I don't think that the initial cost of furnishing a rental property is claimable against CGT. I think its only replacements against revenue income.
                          17-10-2018, 10:01 AM
                        • Expenses
                          jase222
                          I have recently purchased a e bike, I wanted to know if I could claim it as a capital expense or claim 20p a mile or is it not a done thing
                          Cheers...
                          13-10-2018, 16:34 PM
                        • Reply to Expenses
                          jpkeates
                          You have purchased an e-bike solely and exclusively for your property investment business?
                          14-10-2018, 12:51 PM
                        • expenses claim
                          DanandSarah
                          Hi everyone. new here and a new landlord!

                          I work full time and do regular overtime. after saving i've managed to get as deposit together for a buy to let as an investment.

                          i have a weird question about expenses tho.

                          if in the first year if my property hasn't broken...
                          12-10-2018, 16:37 PM
                        • Reply to expenses claim
                          jpkeates
                          HMRC will have told you what return(s) they require when you told them that you had begun your new business as a landlord.
                          14-10-2018, 12:50 PM
                        • Reply to expenses claim
                          catdog1121
                          Note though you can only claim losses against future profits from your property rental business (is it a business or investment, debatable).

                          Be aware also if your tax bill is more than I think £4k then you are asked to pay last years as well as half of next years which can be a big old...
                          13-10-2018, 20:48 PM
                        Working...
                        X