Allowance against cost of BG Homecare plan

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    Allowance against cost of BG Homecare plan

    Ive read quite a bit on whats allowed to be set against tax, from unfurnished property rental , and if Ive got it right, it seems that if I fork out £300+ a yr for a central heating contract , I cant deduct it, but if I pay out bills each time a system malfunctions, I can deduct those bills. Have I got it right please?

    I don't know who told you that a central heating contract is not allowable. My accountant allows mine.


      My accountant also allows mine.


        Oh --well thats really good news thanks. I didnt even mention that expense to the accountant last yr as I was sure Id already read it wasnt allowed in small print somewhere on the tax whats what pages. Stupid, when Ive got a minute Im going to have another trawl and see where Ive picked up the misinformation. Thanks again.


          I think this piece below is where Ive got the idea from . Im afraid the tax submission was rather late on in the year, and a lot of crammed quick research was done by me -before deciding at the last minute to give the figures to the accountant to submit online. It would seem that in my haste and lack of wisdom I must have seen this, decided that the Homecare contract counted as 'insurance' --- the type wasnt specified as allowed in the list shown, and therefore deduced that it wasnt allowable , added to that it was set up a few weeks before the tenants moved in , and Id read too somewhere that you couldnt count costs incurred before that date. Ah well, this is how you learn isnt it. Ill know for this coming tax form .At least Ive satisfied myself that it was misunderstanding something that existed , rather than me having totally imagined it!

          PIM2040 - Deductions: general rules: insurance premiums
          Premiums on insurance policies covering the risks listed below will be allowable if paid for the purposes of the rental business.

          the risk of damage to the fabric of the property,
          the risk of damage to the contents,
          loss of rents.
          Allowable deductions will include premiums in respect of properties that are held for letting but vacant for the time being, as well as properties that are let.


            HMRC are unlikely to object to your including the missing expenditure in 2014-15 Tax Return.


              Dont think Ill try it though - Im the person who would be pulled up for doing 35mph in the middle of a long string of cars doing the same thing lol !
              Sometimes I think Sods law was invented just for me.


                Heating service contracts, gas safety certs, and electrical certs are all genuine business expenses, Wholly and exclusive for your business. There is no problem with claiming this. Regards Peter


                  Are you saying that its actually legal to deduct the ignored £300 allowance for 2013/14 HC agreement from the income Im about to declare for 2014/15? (That would be two lots of £300 allowances as Id be claiming for 14/15 allowance on the agreement as well )

                  Is this the part that allows that ?

                  Quote from HMC website

                  Making a loss

                  Deduct any losses from your profit and enter the figure on your Self Assessment form.

                  You can offset your loss against:

                  future profits by carrying it forward to a later year
                  profits from other properties (if you have them)
                  You can only offset losses against future profits in the same business.


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                    Fair enough. Thanks for your advice. It is on cash basis.

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                    Seems pretty clear there JP. I'll go ahead and alter my calculations

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