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

                        • Rent-a-room and tax deductions
                          doobrey
                          Trying to settle a debate :-

                          I am aware that claiming rent-a-room relief precludes the deduction of expenses for that property such as utilities, GSC, etc.

                          However, my accountant has stated that I cannot deduct an amount for use of my own property for business purposes, since...
                          17-10-2019, 11:57 AM
                        • Reply to Rent-a-room and tax deductions
                          doobrey
                          Thanks. That is what I thought....
                          17-10-2019, 13:23 PM
                        • Reply to Rent-a-room and tax deductions
                          jpkeates
                          No, I believe you would be able to claim an allowance of £4 a week against the income from that business....
                          17-10-2019, 13:18 PM
                        • Reply to Rent-a-room and tax deductions
                          Gordon999
                          The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else. You can let out as much of your home as you want.

                          So your web design business...
                          17-10-2019, 13:04 PM
                        • Reply to Rent-a-room and tax deductions
                          doobrey
                          I am not suggesting that Rent-a-Room is a business (...and that is, I guess, part of the point of my question).

                          I am aware that claiming rent-a-room relief precludes the deduction of expenses for that property such as utilities, GSC, etc. However, my understanding/assumption is that this...
                          17-10-2019, 12:48 PM
                        • Maintenance payment flow of funds
                          Kots
                          Hi all,

                          I am one of three flats and I own a share of freehold. We've setup a company to deal with the day-to-day matters such as maintenance payments and such.

                          One of the freeholders, who is also a director of the company, usually arranges quotes for maintenance works and insurance...
                          15-10-2019, 05:10 AM
                        • Reply to Maintenance payment flow of funds
                          Gordon999
                          For your BTL letting business , you are required to keep proper records of the rental income and expenses for each year and be able to report the figures in your annual income tax return.

                          The rental income and expenses must be supported by bookkeeping records, suppliers invoices...
                          17-10-2019, 12:46 PM
                        • Reply to Rent-a-room and tax deductions
                          jpkeates
                          The point of the Rent a Room scheme is that the landlord isn't running a business, it's a non-commercial arrangement.
                          So you aren't using part of your property for running a business unless you have another business (like a web design business).
                          17-10-2019, 12:40 PM
                        • Reply to Maintenance payment flow of funds
                          Kots
                          Thanks for your replies.

                          We are tenants in common and although the initial idea was to pay funds in advance, I am not for this so the plan would be that funds are paid as they are required.

                          What about HMRC, does anybody know if I'd be unable to offset these payments against...
                          16-10-2019, 14:08 PM
                        • Reply to Maintenance payment flow of funds
                          leaseholder64
                          I'm not clear as to whether the company is the actual freeholder, or you are tenants in common. In the latter case, setting up a company is an unnecessary expense, which probably cannot be fully funded from the service charges.

                          Also I'm not clear as to whether any service charges are paid...
                          15-10-2019, 10:09 AM
                        Working...
                        X