By Andrew Shinn – AAT Apprentice
Are you a landlord? Did you know that you might not be claiming as much as you could be?
In this blog we’re going to tell you about all the expenses you can claim. This will save you money so that you can make the best out of your rental property.
What Can you Claim?
- Mortgage Interest – Although you may have taken out a buy to let mortgage for your property, you are not allowed to claim back the whole mortgage rate. However, you are able to claim back a proportion of the interest on the mortgage.
- Advertising – If you advertise for tenants for your property then you may also claim this back. Although it may not be a lot of money, each penny reduces the income profit with means you’ll be paying less Tax.
- Management Fees – Are you paying anyone to manage your property? This could be anything from a Gardner, a cleaner, or someone you pay to inspect the properties for damage, you can claim that as an expense.
- Insurance – Home insurance is normally more expensive as a landlord so be sure to claim your insurance through your rental property. It’s also important to make sure all of the regulations are up to date as well. The last thing you want is your insurance to be invalid due to faulty smoke alarms. You can also claim fire safety equipment through your rental property.
- Replacement – One of the main things that landlords forget to claim, are repairs and maintenance work. If you have a built in dishwasher and it breaks down, you can claim for a like for like replacement.
Things To Remember!
When offsetting expenses from your income there’s a few things to remember. For example, you have to make sure the claimed expenses are directly related to your business. For example, if on your cleaning expenses, you are getting your own house cleaned at the same time, it’s important to make an adjustment for the private cost.
It’s important to understand what you’re allowed to claim as sometimes the small things, can have a huge impact!
If you would like more information about landlord expenses and the Property income allowance then please contact the TAFS team. We would be more than happy to help you!