Reclaiming VAT on rental business via different business?

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    Reclaiming VAT on rental business via different business?

    I have some BTLs which I rent out privately, not as a company. This is not a trade.

    I also run a design business as a partnership and I am registered for VAT on that business. So I effectively have a self-employed status.

    Is it possible to claim back VAT on expenses incurred in the private rental business, via my design business?

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  • Reply to Van
    by AndrewDod
    As said unless you have at least 100 properties there is no way the van will be an allowable business expense. Stick to the ~50p/mile allowance....
    28-10-2021, 00:00 AM
  • Van
    by jase222
    Hi, I am looking to buy a van solely for my rental business,
    I was looking at leasing a van and was wondering about the tax side and if I can claim the amount or is buying outright a better option.
    I am not a Ltd company and do simplified accounts for mileage.
    I would be grateful...
    27-10-2021, 04:32 AM
  • Reply to Van
    by royw
    If you have another car they're more likely to accept the van as solely business use.
    27-10-2021, 17:57 PM
  • Reply to Van
    by jpkeates
    The safest thing of all is to simply claim the mileage allowance.

    To claim for a proper split in costs, you might be asked to show mileage records for all your business trips, which should match the proportion claimed.
    You'd also have to log the operating costs if you're going to...
    27-10-2021, 15:03 PM
  • Reply to Van
    by jase222
    What would do is 80% business 20% private, if say a van was 200per month could I claim 160 as a expense? Or something else
    27-10-2021, 14:49 PM
  • How is a mortgage overpayment accounted for?
    by nick_noal
    Hi all,

    I own a buy to let property that is registered in a limited company and I would like to set up a regular overpayment each month to reduce the balance of the mortgage.

    When it comes to submitting the annual accounts, how would this overpayment be accounted...
    24-10-2021, 21:41 PM
  • Reply to How is a mortgage overpayment accounted for?
    by Gordon999
    The net profit of £400 = £4800 per year which is subject to corporation tax at 19%. = £912.

    So reduction of mortgage loan for first year will be £3888...
    27-10-2021, 09:21 AM
  • Reply to Van
    by jpkeates
    Unless you have a huge portfolio or a very unusual business, HMRC isn't going to accept a vehicle as a legitimate business expense for a property investment business.

    They may never notice if you do your own returns, and you can claim the mileage that's solely for the business.
    27-10-2021, 08:21 AM
  • Reply to Van
    by Section20z
    Leasing every time - and allocate to the business.

    "If it appreciates, buy it. If it depreciates, rent it"
    27-10-2021, 08:02 AM
  • Reply to How is a mortgage overpayment accounted for?
    by nick_noal
    jpkeates,

    Thanks for your help 👍
    26-10-2021, 18:40 PM
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