Over the years we’ve seen many landlords miss out on valuable tax relief for the simple reason that they’re not aware of the full range of expenses they can claim against their rental profits. This blog aims to cover some of the areas landlords should review to determine whether any claims can be made for expenses they are missing out on.
As a general rule any expenses that are incurred ‘wholly and exclusively’ for running your property business are deductible against your rental income.
The most common expenses already claimed already are likely to be interest costs on a mortgage, letting fees and maintenance costs.
Costs that we find are often overlooked can fall under the below headings;
- Travel expenses
- Computer equipment & office expenses
- Use of home as office
Inevitably you will need to travel from property to property to check on tenants or even to check on repairs and the general condition of your portfolio. Any journeys to visit your accountant or other professional adviser can be claimed and the same is true for any property training seminar travel costs, etc. If you take an uber or public transport, then ensure you keep receipts as these can be claimed. If you drive for business purposes, then you must keep a mileage log. There are various apps that help make tracking these journeys easy. Over a number of years all these costs add up and its important to ensure you are maximising efficiency.
COMPUTER EQUIPMENT & OFFICE EXPENSES
Other expenses such as computer equipment, mobile phone costs etc used to maintain your property business such as talking to agents, accountants, tenants, etc justify making a claim for these expenses.
USE OF HOME AS OFFICE
Most landlords manage their portfolio without a formal office. The administrative tasks involved in running your business are often conducted from home and thus a claim should be made for use of home costs – apportioning the bills at home against the time spent at home on business.
It is thus sensible to charge rent to your property business for the use of your home as an office. This means a proportion of your home running costs – utility bills, mortgage interest (on your home), council tax, broadband etc – can be claimed against your rental profits.
If you want to discuss the topic of expenses that can be claimed for your business, then feel free to get in touch.