Blog Home

Landlord self assessment tax return
Make sure you take full advantage of deductible costs when filling in your landlord self assessment tax return. Allowable expenses for tax deduction include anything you spent money on which was related to the day-to-day running of your buy-to-let property.

Allowable expenses and tax allowances

Letting agent fees
Any money you spend on advertising, either with a high street agent or an online agent such as Upad, can be deducted.

Legal fees
You can claim legal fees for lets of a year or less, as long as the fees are of a revenue nature and relate to your rental business (not the purchase of property, for example, which is capital expenditure). This also applies to renewing a lease that is for less than 50 years.

Accountants' fees
Accountancy expenses from preparing rental business accounts and agreeing taxation liabilities can be deducted.

Insurance
This includes buildings and contents insurance, as well as landlord insurance.

Maintenance and repairs
You can claim for property repairs or maintenance during or between tenancies. Be aware, you cannot claim for improving the property; it must be like for like.

Utility bills
Expenses related to gas, water, electricity and broadband are all allowable deductions.

Charges
Charges related to ground rent, cleaning, gardening or service charges payable to a freeholder can be deducted, along with council tax.

Direct costs
You can also claim for any direct costs you incur related to your letting of the property including phone calls, stationary and mileage.

Changes to landlord taxation and mortgage interest relief

Wear and tear allowance
If a property is rented furnished, HMRC allows you to offset 10% of your net income each year, regardless of whether you replaced any items. From 2016, this will only be allowed if you actually replace furniture.

Mortgage interest
Currently mortgage interest is a deductible expense from your net rental income, but from 2016, over a 4 year phased period, this interest relief will be restricted to the basic tax rate.

For more information on how the tax rate is changing for landlords from 2016/2017, please read this blog post: http://blog.upad.co.uk/blog/changes-to-tax-relief-and-tax-rates-for-residential-landlords.

Self assessment tax return deadlines 2016

To register for your self assessment: 5th October 2016 (https://www.gov.uk/register-for-self-assessment/not-self-employed

To send your paper self assessment: 31st October 2016 (https://www.gov.uk/self-assessment-tax-returns

To fill your tax return online: Midnight 31st January 2016 (https://www.gov.uk/log-in-file-self-assessment-tax-return

Previous article Next article

By Lucie Geller
12 Aug 2016

Categories: Tax

Comments:

tray

Subscribe to the Blog

calculator

Find great tenants fast from £149

View tenant find packages


Save by switching to an online agent

View savings calculator