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, 18:42 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

                        • Confused over multiple dwellings relief!
                          fandango
                          Hello all

                          I'm interested in buying a single block of self-contained units/flats (i.e. own kitchen and bathroom, no shared amenities or rooms). However if I am buying the lot on one single freehold title, would multiple dwellings relief still apply for the stamp duty?

                          Thank...
                          21-02-2019, 22:04 PM
                        • Reply to Confused over multiple dwellings relief!
                          Gordon999
                          Better to ask the experts ( Tax Office for sdlt) or get a quote from a conveyancing firm. .
                          22-02-2019, 13:10 PM
                        • Adding wife to BTL property
                          ringzer
                          In 2005 I bought a BTL property in London with an outstanding mortgage of ~£150,000 and a current market value of ~ £500,000. The apartment has never been lived in by me and my name alone is on the title deeds and mortgage.

                          I would like to add my wife to the property, either 1) title...
                          18-02-2019, 17:37 PM
                        • Reply to Adding wife to BTL property
                          Kape65
                          Okay I can see the image now, however that is just asking how ownership is changing, it doesn't say they will allow it!
                          20-02-2019, 17:23 PM
                        • Reply to Adding wife to BTL property
                          Kape65
                          I don't seem to be able to view the image re option 1. I'm keen to know if it is possible to split ownership with wife without adding her to the mortgage.
                          20-02-2019, 17:19 PM
                        • Reply to Adding wife to BTL property
                          jpkeates
                          Option 2
                          If your wife isn't on the mortgage, the transfer is a gift and there's no consideration and no SDLT.
                          The gain from the point of transfer would be split.

                          If there's no saving of income tax, there's no saving other than the CGT allowance (assuming there aren't any changes...
                          20-02-2019, 12:24 PM
                        • Reply to Adding wife to BTL property
                          Kape65
                          You're right, I remember that post. I agree that it's possible to do it but I feel if HMRC did take the time to view it then it could be classed as fraudulent, evading stamp duty and income tax.
                          19-02-2019, 17:00 PM
                        • Reply to Adding wife to BTL property
                          jpkeates
                          Beneficial ownership is a can of worms and HMRC aren't in any position to dispute what a married couple assert to be how they want to split the beneficial ownership, regardless of title.

                          Someone posted on here a while back, and I made pretty much the same point (which was that the deed...
                          19-02-2019, 16:35 PM
                        • Reply to Adding wife to BTL property
                          Kape65
                          I always believed that a DOT was used because normal ownership of tenant in common property was automatically registered as 50/50 split when the true ownership may have been different i.e wife has put more money in or such. Surely to transfer a percentage to your wife and then use a DOT to claim that...
                          19-02-2019, 15:24 PM
                        • Reply to Adding wife to BTL property
                          jpkeates
                          Where property is owned as tenancy in common, the default presumption is that each tenant owns the property in equal proportions.
                          But that doesn't have to be the case, the ownership can be shared in specified proportions, so 1% and 99%, or 60%:40% are possible.

                          That split would normally...
                          19-02-2019, 13:51 PM
                        Working...
                        X