Tax - 'Property repairs and maintenance' as a percentage of Property Income

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    Tax - 'Property repairs and maintenance' as a percentage of Property Income

    When reviewing and preparing my Self Assessement, I always check my various cost catagories as a % of the total Property Income. Its a bit of a sanity and health check.
    This last year has been higher from various things, but after a previous tenant default and runner, we ended up having quite a bit of Repaininting and Carpets Replaces as well as other carpet cleaning etc. This was all on top of the general maintance from a large house with many bathrooms etc..

    Anyway the Percentage of Maintenance Costs against Income is 21.9%. It is higher than expected, so I was just wonderig what levels others have ?
    Clearly its covered in the SA Tax calclation, but at the same time I want to make sure my costs are balanced.

    I think at one point there was a 10% standard allowance and so this is what made me double check things.

    Overall Percentage Levels
    Maintenance - 21.9%
    Finance (50%) - 14.4%
    Legal, management.... - 4.0%
    Other - 1.3%
    Domestic Items - 0.7%


    #2
    The 10% allowance was for furnished accommodation only.

    My own figures are nowhere near those, but if they're genuine expenses, fair enough.
    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).

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      #3
      The 10% was a wear & tear allowance against fully furnished lets only for the cost of furnishings. Maintenance (boilers, electrics etc) was claimed in addition.

      The government didn't really understand how this worked and just saw it as a generous bung to all landlords. It was sold as a tax break to all landlords whether they carried out repairs or not (which isn't quite correct).
      The way it is now structured, I'm guessing, has resulted in a lower overall tax take.

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        #4
        Last year my deductions were 50% of my rental income. Accountant did not raise a whimper.

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          #5
          Originally posted by JK0 View Post
          Last year my deductions were 50% of my rental income.
          Put in a new boiler, so next tax year my deductions will also be about 50%.

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            #6
            This year my expenses on one property are 5 fold (500%) the income as a result of a few £40K service charge bills.

            When you need major repairs like a new roof (which will happen), or a few new boilers, it is not unusual to make a loss.

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