Reclaimable rental expenses (landlord)

[rfisher]

Can I claim for buildings insurance if I rent a property out that I own?

Is it just the tax on the insurance or all of the cost that I can get back?

If I buy a lawnmower for the tenants to use can I claim that back?

Ta.

[Eric Mc]

Yes, you can deduct the cost of buildings and contents insurance against the rental income.

I don't quite understand when you ask "can I only claim back the tax on the insurance?"

You offset the full cost of the insurance (including any Insurance Premium Tax contained within the insurance premium).
And you don't "get back" anything. It just helps reduce the tax bill arising from your rental profits.

Example

Rental Income £10,000

Less:
Rental Costs

Mortgage Interest 1,000
Insurance 500
Repairs 500
Agents Fees 400

Total Allowable Expenses 2,400

Taxable rental profits £7,600

Edited by Eric Mc on Friday 25th September 16:29

[rfisher]

Thanks Eric.

What about a lawnmower?

I presume that I can add that to the tax exempt total income but not claim back the cost of it entirely?

Thanks.

[Eric Mc]

Why would you want to add the cost of a lawnmower to your rental income?

I would claim it as a deduction AGAINST the rental income.

[uuf361]

Eric Mc said:

Yes, you can deduct the cost of buildings and contents insurance against the rental income.

I don't quite understand when you ask "can I only claim back the tax on the insurance?"

You offset the full cost of the insurance (including any Insurance Premium Tax contained within the insurance premium).
And you don't "get back" anything. It just helps reduce the tax bill arising from your rental profits.

Example

Rental Income £10,000

Less:
Rental Costs

Mortgage Interest 1,000
Insurance 500
Repairs 500
Agents Fees 400

Total Allowable Expenses 2,400

Taxable rental profits £7,600

Edited by Eric Mc on Friday 25th September 16:29

You should also be able to claim the 10% wear and tear allowance (£1K in the exmaple above) but then you have to be careful about claiming for replacing items (such as your lawnmower) IIRC.

[Eric Mc]

uuf361 said:

Eric Mc said:

Yes, you can deduct the cost of buildings and contents insurance against the rental income.

I don't quite understand when you ask "can I only claim back the tax on the insurance?"

You offset the full cost of the insurance (including any Insurance Premium Tax contained within the insurance premium).
And you don't "get back" anything. It just helps reduce the tax bill arising from your rental profits.

Example

Rental Income £10,000

Less:
Rental Costs

Mortgage Interest 1,000
Insurance 500
Repairs 500
Agents Fees 400

Total Allowable Expenses 2,400

Taxable rental profits £7,600

Edited by Eric Mc on Friday 25th September 16:29

You should also be able to claim the 10% wear and tear allowance (£1K in the exmaple above) but then you have to be careful about claiming for replacing items (such as your lawnmower) IIRC.

The 10% Wear and Tear al;lowance is only claimable when the property is let Fully Furnished.

The 10% Claim is actually calculated on the rental income less rates and water charges paid for by the landlord.

[uuf361]

Eric Mc said:

uuf361 said:

Eric Mc said:

Yes, you can deduct the cost of buildings and contents insurance against the rental income.

I don't quite understand when you ask "can I only claim back the tax on the insurance?"

You offset the full cost of the insurance (including any Insurance Premium Tax contained within the insurance premium).
And you don't "get back" anything. It just helps reduce the tax bill arising from your rental profits.

Example

Rental Income £10,000

Less:
Rental Costs

Mortgage Interest 1,000
Insurance 500
Repairs 500
Agents Fees 400

Total Allowable Expenses 2,400

Taxable rental profits £7,600

Edited by Eric Mc on Friday 25th September 16:29

You should also be able to claim the 10% wear and tear allowance (£1K in the exmaple above) but then you have to be careful about claiming for replacing items (such as your lawnmower) IIRC.

The 10% Wear and Tear al;lowance is only claimable when the property is let Fully Furnished.

The 10% Claim is actually calculated on the rental income less rates and water charges paid for by the landlord.

Agreed, I was assuming it was a furnished property as the OP had been silent on that point and it is a deduction worth claiming

Do any landlords actually pay water charges and rates ? My tenants have always paid for these.

[Eric Mc]

It's not that usual - although if a property becomes unoccupied for all or part of the year the landlord will have to meet those costs - so they do crop up in Wear and Tear computations from time to time.;

[Wings]

rfisher said:

Thanks Eric.

What about a lawnmower?

I presume that I can add that to the tax exempt total income but not claim back the cost of it entirely?

Thanks.

You can claim the cost of the lawnmower as a deduction against your gross rental income, as you can ALSO claim for any other similar type of expense that you incur in the course of letting your property, ie. car fuel, telephone, postage stamps, bank charges etc. etc. AND etc.

[Eric Mc]

Wings said:

rfisher said:

Thanks Eric.

What about a lawnmower?

I presume that I can add that to the tax exempt total income but not claim back the cost of it entirely?

Thanks.

You can claim the cost of the lawnmower as a deduction against your gross rental income, as you can ALSO claim for any other similar type of expense that you incur in the course of letting your property, ie. car fuel, telephone, postage stamps, bank charges etc. etc. AND etc.

IF you are incurring these costs in the process of managing the property.
If you are using an agent to administer the properties on your behalf, you will have less case for claiming car running costs etc - although, of course, you will be able to claim the agent's fees and management charges.

[rfisher]

Thanks guys.

Property will be unfurnished.

Any personal recommendations for property management agents in W. Yorks?

[Wings]

Eric Mc said:

Wings said:

rfisher said:

Thanks Eric.

What about a lawnmower?

I presume that I can add that to the tax exempt total income but not claim back the cost of it entirely?

Thanks.

You can claim the cost of the lawnmower as a deduction against your gross rental income, as you can ALSO claim for any other similar type of expense that you incur in the course of letting your property, ie. car fuel, telephone, postage stamps, bank charges etc. etc. AND etc.

IF you are incurring these costs in the process of managing the property.
If you are using an agent to administer the properties on your behalf, you will have less case for claiming car running costs etc - although, of course, you will be able to claim the agent's fees and management charges.

Agree, and as I informed the Revenue side of HM Revenue & Customs, my expenses are a lot less by my self management than if I were to use an agent to manage my properties.

Edited by Wings on Sunday 27th September 12:47

[Eric Mc]

Depends on circumstances and prefernces as to whether agents are used. Some people prefer to leave the hassley jobs to the agents - or have no choice because they live too far away from their rental property.