Is there a maximum you can put against tax

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    Is there a maximum you can put against tax

    Good evening.

    We have done our tax return for last year, and the system highlighted our tax returns as too high. We still pay roughly £1000 in tax after deductions. All work was necessary, replacing two leaking showers in two flats was an expensive job because it also included retiling and repainting.

    Is there a limit how much a landlord can put against tax in expenses? What should we expect in this situation? Shall we have to account for all works we've done (we can and keep all the receipts)? Can they cap our expenses because they are "too high" and at what level? Thank you.

    #2
    keep all receipts and keep them for 10 years in the file - claim for what you are suppose to claim for ie all work necessary , the leaking showers and retiling should be fine , so long as you can account for everything .
    if you have some expensive repairs ie double glazing , property empty for 6 months then write this in the space provided under 'comments further information' just so that they know

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      #3
      If the expenses are the actual costs incurred there is no cap, as long as you are not improving the property (for example there was cheap taps and you decided to put gold plated taps).

      You can even put in loss and obtain a refund or credit for the following year as long as it is legitimate.

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        #4
        Thanks for that. I didn't know that. We had a nightmare tenant who ruined a property. We didn't know that we could put all the repairs, new washing machine, etc. against tax. Too late now. Thank you again.

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          #5
          What type of SATR ( Tax Return ) did you submit online ?

          If you submitted a paper tax return before 31 Oct , it could have been SA200 ( short tax return) or SA105 ( tax return for property income )

          For submitting an online tax return, what figure did you enter in the boxes for annual rental income ? and allowable expenses ? and rental surplus ?

          If the "total expenses" is greater than the annual rent, the loss figure is put into the Box ( to carry loss to next year ).

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            #6
            Originally posted by randal_bond View Post
            Thanks for that. I didn't know that. We had a nightmare tenant who ruined a property. We didn't know that we could put all the repairs, new washing machine, etc. against tax. Too late now. Thank you again.
            How long ago and do you still have receipts? You might find the taxman more helpful than you think over genuine mistakes.

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              #7
              Originally posted by randal_bond View Post
              Too late now.
              Probably not.

              Phone your tax office (not the general help line; number should be on your tax return), explain the situation (you have expenses not included on return because you were not aware they are deductable) and what you can do about it.

              Also ask about correcting previous year' returns if that is applicable.

              Tax staff are generally helpful, as they have a duty to collect the tax due AND ONLY the tax due.
              I once got advice from my tax office that saved me about £1000 a year in tax!

              I would also recommend reading the HMRC Property Income Manual (PIM) available on HMRC web site to find out what you can (and cannot) claim.

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                #8
                randal-bond

                You can corrct mistakes and ommissions in your tax return going back to 3 years ago.

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