New Let with retainer paid - can I start claiming allowable expenses now?

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  • King_Maker
    replied
    Originally posted by Jenny P View Post
    I was just hoping to be able to offset allowable expenses like gas and
    electricity standing charges until they move in, the broadband charge,
    insurance and mortgage interest.
    I also have not yet put in a microwave, iron et.c, but I guess I cannot
    call these 'allowable expenses' ?
    You can - except white goods etc. A 10% (of net rents) Wear & Tear Allowance can be claimed for furnished lettings.

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  • Jenny P
    replied
    Thanks for the link - very helpful.
    HMRC website is so full of info, I find it hard to get where I want to without going round in circles!

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  • Jenny P
    replied
    Thanks

    I was just hoping to be able to offset allowable expenses like gas and
    electricity standing charges until they move in, the broadband charge,
    insurance and mortgage interest.
    I also have not yet put in a microwave, iron et.c, but I guess I cannot
    call these 'allowable expenses' ?

    Leave a comment:


  • King_Maker
    replied
    It does not really matter as they should qualify as pre-trading expenditure.

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  • Gordon999
    replied
    Here is HMRC's leaflet on start of letting:

    http://www.hmrc.gov.uk/manuals/pimmanual/pim2505.htm

    Leave a comment:


  • TaxationPete
    replied
    What expenses are you thinking about. Contractually the property is let so I do not see a problem. Regards Peter

    Leave a comment:


  • New Let with retainer paid - can I start claiming allowable expenses now?

    Hi
    It would be great if anyone knows the answer to this one.
    I have a new property which has been let from Sept 2013 with a retainer paid for July and August. Can I claim allowable expenses from the beginning of July or do I have to wait until the beginning of September when the actual tenancy period starts?

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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 Gordon999
    If you paid £50 for replacement picture, just book the £50 cost as allowable operating expense against the rental income. Nobody can prove this £50 expense is an "improvement to your property"....
    27-09-2021, 20:20 PM
  • 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
    ram,

    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
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