Can I claim expenses against tax?

Can I claim expenses against tax?

7:04 AM, 16th April 2015, About 10 years ago 6

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I live in Bury,Lancashire and am about to rent a property near Durham City. I incurred some expenses i.e. gas safety certificate, insulation and a visit to the property to facilitate these expenses last month which is also the last tax year when the property was not as yet let (it has never been let).

I am about to make another round trip of 250 miles to finalise arrangements before tenants move in on the 25th of this month. The property will be managed by a local agent.

I have two questions:

1. I incurred expenses in the last tax year before the property was let. Will that pose a problem for HMRC when declaring a loss before it was rented?

2. Can I claim travel expenses and food allowance for the round trips before the agent manages the property for me? 2a. I believe once the agent is in play those allowances will only apply from the agents office even if I travel from Bury to facilitate upgrades in the future. Am I correct?

Many thanks

Kenexpenses


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Simon Gardner

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13:42 PM, 16th April 2015, About 10 years ago

Hi Ken,

1. You have incurred 'pre-trading' expenditure and this is allowable as long as the property is available for letting or is being prepared for letting as in your case. However any allowable expenses incurred prior to the first letting are deemed to be incurred on the first day the property is let, therefore you should include this expenditure in the tax year in which this happens.

2. Any travel and reasonable subsistence expenses incurred necessarily in the course of operating your rental business should be allowable.

Regards,

Simon.

Joe Bloggs

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19:14 PM, 16th April 2015, About 10 years ago

dont understand why you would think your agents address is relevant to mileage claims. it is your claim, not the agents.

KEN WALTERS

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19:41 PM, 16th April 2015, About 10 years ago

Thanks Simon.That clears that up for me.
Hi Joe,I've read so many blogs(pun intended) and listened to several podcasts that I must have picked it up somewhere.Perhaps some member will know one way or the other.
Cheers

Ken

Mark Alexander - Founder of Property118

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20:42 PM, 16th April 2015, About 10 years ago

Reply to the comment left by "KEN WALTERS" at "16/04/2015 - 19:41":

I agree with Joe, mileage is from your normal place of business which for most landlords is their home.
.

Jason Holden

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11:37 AM, 18th April 2015, About 10 years ago

If expenses are incur in relation to the rental business they are tax deductable as I am sure the property was available to rent.

Travel at 45 pence per mile for the first 10,000 miles from home to property is allowable.

As for food, be careful, you have to eat anyway!

Also, another thing for the buy to let land lord to know, HMRC no longer allow tax deduction for white goods, carpets or curtains in partly furnished or unfurnished property, so don't get caught out!

Jason

KEN WALTERS

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20:12 PM, 18th April 2015, About 10 years ago

Thanks Mark,I guess you should know.
Cheers Jason some good points there!

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