Allowable expenses - phone and laptop

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Allowable expenses - phone and laptop

    I use my mobile phone primarily for landlord duties - I'd say at least 70%.

    I've had the same iPhone for about 4 years, and am currently just on a PAYG contract. Last tax return I charged 1/12th (e.g. 1 month's) contract charge against my tax return, but I have realised recently I use it more for landlord stuff than I do for personal use.

    However, the phone is getting old and not really fit for purpose. I am keen to upgrade to the iPhone 5 and would probably get this on a contract at about £35 a month (which would also include the cost of the phone, spread over a 2 year contract). How much would be reasonable to claim for tax return purposes?

    Also, what about laptops etc. used for managing the business? I only want to claim what's fair, but also don't want to miss out on allowable expenses.

    Thanks in advance.

    #2
    Both the phone and laptop are tax deductible.

    You need to restrict them for personal use.

    Comment


      #3
      So can I use them for personal use at all? Seems ridiculous to have to run two separate machines. Can I apportion costs - e.g. 70% cost of each of them towards the business?

      Thanks

      Comment


        #4
        Yes, you can use them personally.

        Whatever the business use is, you can claim it. If it's 90%, claim 90% - but be prepared to justify it if challenged by HMRC.

        Comment


          #5
          Thank you. How would you go about justifying it, if called to do so? Calls wouldn't be a problem (as can obviously show phone bills pertaining to business), but laptop use much more difficult.

          Comment


            #6
            How many properties do you have in your B2L business. Regards Peter

            Comment


              #7
              Originally posted by Laurasplog View Post
              Thank you. How would you go about justifying it, if called to do so? Calls wouldn't be a problem (as can obviously show phone bills pertaining to business), but laptop use much more difficult.
              If the laptop costs (say) £300, then claiming the maximum is only worth £60 (for a basic rate payer) - so HMRC are likely to get that worried.

              Comment


                #8
                We have four properties (my husband and I), but I do 95% of the administration / phone calls / dealing with tenants. (He does the manual labour!!)

                I am a higher rate tax payer, if that makes a difference.

                Thank you.

                Comment

                Latest Activity

                Collapse

                • Reply to Recent tax return
                  by jpkeates
                  I suspect that you completed the return incorrectly.
                  25-01-2022, 09:30 AM
                • Recent tax return
                  by Ailers
                  Hi, new here, sorry if this has been asked already but I can't find the answer.

                  I have just completed my tax return for 2020/21 as a landlord with a few properties. My income was 22k and my outgoings (maintainance, ground rent, insurance, mortgage payments etc) was 18k. The mortgages are...
                  24-01-2022, 22:42 PM
                • Reply to 50/50 ownership versus rental split
                  by AndrewDod
                  Yes (if you are spouses)
                  Probably wise to use a lawyer
                  CGT not relevant as you can freely transfer between spouses for CGT purposes (even shortly before a sale)...
                  25-01-2022, 08:52 AM
                • 50/50 ownership versus rental split
                  by Deeks67
                  Hi guys , I have recieved some inaccuratre advice ( not from this site ) RE ownership and rental income split . my wife and I have 2 unemcumbered properties which are renting out , the first started renting in Oct 2020 and the second started in July 2021 . Both properties are in joint names 50/50 (...
                  25-01-2022, 06:24 AM
                • Tax return
                  by pchaure
                  Hi
                  New to this, buy to let property got in 2018 but renewing took time and COVID hit. Rented out since Dec 2020. I had Electrical work done completed in 2019, as had no income I had not filled in self assessment. Can I claim it in this tax year?
                  24-01-2022, 19:05 PM
                • Reply to Tax return
                  by jpkeates
                  If it was first let in December 2020, the costs allowable against income prior to that take place on the first day of the first tenancy for tax purposes.

                  So, if you mean can you claim it on a tax return for April 2020 to April 2021, the answer is yes.
                  You can't claim it for this tax...
                  24-01-2022, 21:10 PM
                • Advice
                  by jhoggard
                  Hi,

                  I currently have a property rented out in my own name with a fair bit of equity around 50% LTV this is actually a repayment mortgage which i'm looking to switchover to a interest only. When i do this i'm also taking money out of the property to put towards another which i'm looking...
                  20-01-2022, 14:25 PM
                • Reply to Advice
                  by SouthernDave
                  I started my limited company a year before buying the first property, then bought a second 2 months later, a third 3 months after that, a fourth 5 months after that and so on to where I am now. Our lenders have never said they want a separate company per property. Ive never heard of that, if it were...
                  23-01-2022, 17:40 PM
                • Reply to Advice
                  by jpkeates
                  I don't think we disagree.

                  The OP has one property and is looking to buy a second.
                  At that point in that business, lenders will want a company per property.

                  There's a point where that ceases to be the case, when the portfolio gets big enough, or, presumably when someone...
                  23-01-2022, 17:34 PM
                • Reply to Advice
                  by SouthernDave
                  i concur with James, once you get over 4 properties, they consider you to be a portfolio landlord and want to start seeing cashflow forecasts before lending to make sure the company is buoyant. Directors guarantees each time but no limits on number of properties or number of dofferent lenders.
                  23-01-2022, 16:50 PM
                Working...
                X