tax queries and receipts

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    tax queries and receipts

    Please can someone clarify the following

    1) Does the receipts for cleaner/plumber expenses need to be VAT receipts

    2) If I pay the VAT for any work done, if it possible to claim it back

    3) If I pay the solicitors, and mortgage advisor and surveyer for purchanse of a BTL property can I show them as expenses and offset that against my rental profits for the first year. Or does it only count against the CGT?

    4) If I have a pre-paid mobile phone which I use to call the tenants, sort out tenancy issues with contractor and spend £10 on it every month which includes my personal calls as well. How much of it can be charged as an expense for the tenancy ? DO I need to produce receipts for claiming these ?

    1) No, only if they are vat registered

    2) If you have a VAT receipt AND are VAT registered

    3) That goes against CGT. Remortgage costs, on the other hand, can be offset against income tax

    4) The amount that is due to the tenancy. Get a separate one for your personal calls then the whole amount can be claimed. You possibly *won't* need receipts (with it being such a minimal amount), but they never hurt.


    Latest Activity


    • Let Property Campaign.
      by armour
      Hi all,

      A friend of mine has been renting out a flat since 2004 and has not declared any of the income to HMRC in all that time.

      She wants to come clean and pay the accumulated income tax she owes by making a non-prompted disclosure using the Let Property Campaign system....
      13-09-2021, 13:45 PM
    • Reply to Let Property Campaign.
      by theartfullodger

      Well done HMRC..

      None of my business, and obviously not in anyway a criticism of anybody, but If I had had a friend who I found out had been fiddling tax for 16 years they'd no longer be my friend.
      18-09-2021, 11:46 AM
    • Reply to Let Property Campaign.
      by armour
      Fair enough. Thanks for your advice. It is on cash basis.

      I guess it would only save her 50 odd quid anyway, maybe less than £80 once the fine and interest is added. I guess she'll have to swallow that.
      Once again, thanks JP and Gordon for your help.
      18-09-2021, 09:07 AM
    • Overseas Landlords
      by Santa Fe
      I'm from UK but live overseas and recently discovered that I should be registered as an overseas landlord. I've done a bit of research on what it involves and it seems a bit of a headache - tenants have to fill out forms and pay tax from their rent direct to HMRC. If anyone here is registered as an...
      16-09-2021, 16:44 PM
    • Reply to Overseas Landlords
      by Santa Fe
      Boletus, thank you.
      17-09-2021, 18:37 PM
    • Reply to Let Property Campaign.
      by jpkeates
      armour - Sorry, I don't know.
      It might depend on whether you're accounting on the cash basis (in which case I suspect not) or the accrual basis (when it's possible).

      But it's not something I ever got involved with when the W&T allowance existed, and all of the practical guidance...
      17-09-2021, 11:43 AM
    • Reply to Let Property Campaign.
      by armour
      Thanks JP, that's clear. I'll put the bathroom in with the income tax then. I guess it's much of a muchness anyway as the associated reduction in interest and fine will probably equal out.

      I have one last question, if you'd be so kind.

      During the year she had to make the eviction,...
      17-09-2021, 09:18 AM
    • Reply to Overseas Landlords
      by boletus
      You fill out this form requesting to have rental income without deduction of tax and pay it yourself;
      16-09-2021, 17:26 PM
    • Reply to Let Property Campaign.
      by jpkeates
      The 10% was for furnishings, so built in stuff should be ok to claim.
      The bathroom refurb depends on what was done if it was simply a replacement, it's maintenance, if it was a significant upgrade, it's likely to be part capital/part maintenance.
      If it's a new bathroom, it's probably ca...
      16-09-2021, 08:37 AM
    • Reply to Let Property Campaign.
      by armour
      Seems pretty clear there JP. I'll go ahead and alter my calculations

      One more thing, My friend had a bathroom refurb and a built in oven and hob replaced during the period when the flat was let furnished. I'm pretty sure that these costs can be detucted in addition to the 10% W&T, but...
      15-09-2021, 14:06 PM