can the mrs claim for "home office" as a landlord?

[petemurphy]

other half is doing her tax return - she works full time and has a rental property. quick google found this article saying you can claim £156 a year home office expense - article is from 2009 is this still true / how much can she claim etc?

http://blog.propertyhawk.co.uk/2009/10/tax-every-l...

can she claim for time i have spent maintaining it, fixing things etc?

can she claim anything for not having an agency manage is - ie a management fee for either her or me?

any other loop holes?

thanks

Edited by petemurphy on Tuesday 8th January 22:30

[petemurphy]

cough

[Eric Mc]

A landlord can make a claim for "Management" of the rental property. If they are managing the property themselves i.e. NOT using an agent, then management charges would be made up of such costs as "Use of Home", "Telephone Costs", "Mileage" etc.

[petemurphy]

Eric Mc said:

A landlord can make a claim for "Management" of the rental property. If they are managing the property themselves i.e. NOT using an agent, then management charges would be made up of such costs as "Use of Home", "Telephone Costs", "Mileage" etc.

thanks eric is there a standard cost people put in for that / allowed?

[Eric Mc]

petemurphy said:

Eric Mc said:

A landlord can make a claim for "Management" of the rental property. If they are managing the property themselves i.e. NOT using an agent, then management charges would be made up of such costs as "Use of Home", "Telephone Costs", "Mileage" etc.

thanks eric is there a standard cost people put in for that / allowed?

No.

The dreaded word "reasonable" applies.

[Devilstreak]

Reasonable Normally around £5/week.

Edit- beaten to it by Eric.

[petemurphy]

thanks

[surveyor]

anonymous said:

[redacted]

Tonker being paranoid here. You'll be safe on business rates front

[Deva Link]

surveyor said:

anonymous said:

[redacted]

Tonker being paranoid here. You'll be safe on business rates front

...what about planning permission?

Our accountant agreed £300/yr for use of home office with HMRC and that's paid to me through an expenses claim, with me as an employee of a limited company. It's been discussed on here before though and one accountant is cheeerfully putting through corporation tax relief claims of thousands of pounds for businesses being run from home.

Our household insurer got into a bit of a tizzy this year when I rang to renew and advised a change of my wife's occupation - she now works for the same company as me and we both work from home (as I have for years). Clerical work at home is stated as being fine, but they (at least the person I was speaking to) seemed to think that what we were doing amounted to running a business from home.
I gave her our company head office address down South and that seemed to satify her, but at one point I thought she was going to say the standard domestic policy wouldn't cover us.

[mrmr96]

Just to add to the above, I don't think claimin for fixing time or management time will be a goer from a tax saving pov because your have to declare the amount as income on YOUR tax return. Hence the benefit will be negated if you're both payin the same marginal rate.

[surveyor]

Deva Link said:

surveyor said:

anonymous said:

[redacted]

Tonker being paranoid here. You'll be safe on business rates front

...what about planning permission?

Our accountant agreed £300/yr for use of home office with HMRC and that's paid to me through an expenses claim, with me as an employee of a limited company. It's been discussed on here before though and one accountant is cheeerfully putting through corporation tax relief claims of thousands of pounds for businesses being run from home.

Our household insurer got into a bit of a tizzy this year when I rang to renew and advised a change of my wife's occupation - she now works for the same company as me and we both work from home (as I have for years). Clerical work at home is stated as being fine, but they (at least the person I was speaking to) seemed to think that what we were doing amounted to running a business from home.
I gave her our company head office address down South and that seemed to satify her, but at one point I thought she was going to say the standard domestic policy wouldn't cover us.

managing property from your spare room is not going to excite the planning department.

Insurance is an interesting one. I've been working from home for years (running a business) and have never had an issue.

[Eric Mc]

surveyor said:

managing property from your spare room is not going to excite the planning department.

Insurance is an interesting one. I've been working from home for years (running a business) and have never had an issue.

100% agree, The vast bulk of councils in the UK will not cause a problem if you are operating a small busienss from your home PROVIDED you do not have to make material structural alterations to the property or the fundamental nature of the use of the property is changed.

[sumo69]

mrmr96 said:

Just to add to the above, I don't think claimin for fixing time or management time will be a goer from a tax saving pov because your have to declare the amount as income on YOUR tax return. Hence the benefit will be negated if you're both payin the same marginal rate.

All true - but travelling to the site to meet tenants, tradesman etc @ 45p per mile is allowable as a deduction and not reportable as income elsewhere.

David

[Eric Mc]

Because it's not deemed to be income I suppose.

45p is the "official" rate that is supposed to cover general motoring costs.

As long as the claim is based on covering costs and does not contain a profit element (which WOULD be "income" for tax purposes) then such claims are generally OK.

Charging for "time spent" would be looked on as a charge for profit - and therefore taxable as income in the hands of the recipient.