Allowable Expenses?

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  • Gordon999
    replied
    Originally posted by EX-LANDLORD View Post
    Thank you, I looked at box 27 regarding the legal fees of eviction. What is the significance of the 'with a view to re-letting' note? I didn't re-let. I found the whole thing so stressful I decided not to be a landlord any more!
    Lets say at the time of instructing a solicitor to evict the non-paying tenant, you intended to re-let and your letting business continues until you, at a later date decided to terminate the business.

    You can claim the expenses against rental income up to the date of terminating your letting business.

    Leave a comment:


  • King_Maker
    replied
    Originally posted by EX-LANDLORD View Post
    Thank you for your reply.

    Just to clarify then, the unpaid rent is a bad debt and can be counted as an expense, or is it just income I never got?

    We did the cleaning ourselves, the Lettings Agency said that this could be charged at £10 per hour. I wouldn't rely on this, as they were also supposed to have checked out the tenants' financial background.
    It depends if you use the Accruals basis or Cash Basis. If the latter, Bad Debt relief is given automatically, as you have not received that rent.

    You cannot charge for cleaning if you do the work yourself - except for materials.

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  • EX-LANDLORD
    replied
    Thank you, I looked at box 27 regarding the legal fees of eviction. What is the significance of the 'with a view to re-letting' note? I didn't re-let. I found the whole thing so stressful I decided not to be a landlord any more!

    Leave a comment:


  • EX-LANDLORD
    replied
    Thank you for your reply.

    Just to clarify then, the unpaid rent is a bad debt and can be counted as an expense, or is it just income I never got?

    We did the cleaning ourselves, the Lettings Agency said that this could be charged at £10 per hour. I wouldn't rely on this, as they were also supposed to have checked out the tenants' financial background.

    Leave a comment:


  • King_Maker
    replied
    IMHO, they are all allowable against rental income.

    The unpaid rent becomes a Bad & Doubtful Debt when its recovery is unlikely.

    Leave a comment:


  • Gordon999
    replied
    Yes you can deduct the legal expenses .

    See notes about eviction of tenant under box 27 in Form SA105 Notes.

    If its "unpaid rent", its not income you received during the tax year ?

    http://www.hmrc.gov.uk/worksheets/2012/SA105-Notes.pdf

    Leave a comment:


  • EX-LANDLORD
    started a topic Allowable Expenses?

    Allowable Expenses?

    I used to be a landlord. My last tenants claimed to have sold up wanting a temporary let while they looked for another house. The Lettings Agency also claimed this. Later it transpired they were claiming Housing Benefit, rent payments became later and later.

    For various reasons I needed to give them their notice, so I did this under a Section 21, giving them 2 months notice. They asked for an extension claiming that they had started conveyancing on a house purchase. I granted another month even though I did not believe the house buying story. (The Local Authority later confirmed in writing that they were on Housing Benefit).

    To cut a long story short they ignored the Section 21 and wouldn't move out. I ended up paying for a Possession Order and some of the costs of an Enforcement Order. The deposit taken didn't cover all the rent arrears and the house was left in such a filthy state it took many hours of cleaning and repairs.

    As I am now doing my tax return I am wondering what I can offset as expenses of the let. I presume I can deduct the cleaning and repairs, but not the unpaid rent? However I am wondering whether the legal expenses are an allowable expense of the let?

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  • Damaged artwork expense
    by jtufty
    Hi all

    Silly minor question really. Last week the tenant accidentally knocked a framed picture off the wall and smashed it. It was only a cheap thing (I guess value was £10). I went out and bought a replacement picture for her. (I know I didnt have to, but shes a good tenant). I bought...
    24-09-2021, 10:35 AM
  • Reply to Damaged artwork expense
    by jpkeates
    If something is purchased wholly and exclusively for the business it's an allowable expense of one kind or another.
    It doesn't have to be a sensible thing to buy, it just has to have been bought for the business.

    If it were a gift it would not be allowable, but it's hard to see how...
    27-09-2021, 08:10 AM
  • Reply to Damaged artwork expense
    by ram

    As per above, as the place is "part-furnished", which will not incude pictures on walls.

    It's a gift to a stranger. ( They are not family, not close friends - etc. ) and not a claimable expence in any way..
    ...
    25-09-2021, 16:05 PM
  • Reply to Damaged artwork expense
    by nukecad
    I'd see this as an altruistic gift to your tenant and leave it at that.

    My previous LL (although he had his faults) used to buy the 3 of us in his small HMO a £20 case of beer each at Christmas, I doubt he tried to claim it off tax.
    25-09-2021, 15:46 PM
  • Reply to Damaged artwork expense
    by jtufty
    Its let "part-furnished". (she didnt have a bed, so I put a bed in there, and the white goods, and the [now-broken] picture and a few other bits n bobs)...
    25-09-2021, 15:13 PM
  • Reply to Damaged artwork expense
    by Section20z
    You don't need to write anything. Retain the receipt and just include the appropriate amount in youR expenses/capital totals...
    25-09-2021, 13:57 PM
  • Reply to Damaged artwork expense
    by ram

    We assume the place is let as furnished ?

    I don't think pictures are classed as furniture / but then again, a mirror screwed to the wall - if broken by the tenant, then the tenant pays.
    So pictures ? not sure.
    I would charge the tenant the cost of replacement.
    ...
    25-09-2021, 11:43 AM
  • Reply to Damaged artwork expense
    by jtufty
    Thanks guys. I dont know what came over me! A momentary wave of altruism. Most unlike me!

    I have the receipt. What should I log it as? Should I literally just write "capital expense" or should I be more specific such as "replacement of broken picture"?
    25-09-2021, 06:45 AM
  • Reply to Damaged artwork expense
    by jpkeates
    It's a replacement item of furniture and its allowable as such.
    There's an inevitable element of betterment when you replace one thing with another.

    And £40 is neither here nor there as a capital item.
    24-09-2021, 13:16 PM
  • Reply to Damaged artwork expense
    by Section20z
    That sounds definitely like an improvement as you didn't have to splash out £50 you crazy dude.
    £10 down to repairs and £40 capital expense I reckon.
    24-09-2021, 11:59 AM
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