Most landlords claim maintenance expenses, mortgage interest, insurance and letting agent fees. Far fewer claim everything they are actually entitled to. Here are five that regularly get missed.
Mileage to the property. Every trip to inspect the property, meet a contractor, or deal with a tenant issue is claimable at 45p per mile for the first 10,000 miles in the year. If you make 20 visits of 10 miles each, that is £180 in deductible expenses from journeys you were making anyway.
Telephone and broadband costs. If you use your mobile to deal with tenants and contractors, a proportion of your phone bill is a legitimate expense. Keep a simple log of business calls. Even a 25% apportionment on a £600 annual bill saves £60 in tax for a basic rate payer, more for higher rate.
Professional subscriptions. Membership of landlord associations such as the NRLA, or subscriptions to property publications and legal update services directly related to your lettings business, are all deductible.
Accountancy and legal fees. Your accountant’s fee for preparing rental accounts or self assessment returns is fully allowable. So are reasonable legal fees incurred in connection with the letting, such as drawing up a tenancy agreement.
Replacement of domestic items. The replacement domestic items relief allows you to claim the cost of replacing furnishings, white goods, and other domestic items like curtains and carpets. You cannot claim for the original purchase, but replacements on a like-for-like basis are deductible. A new fridge at £400 saves a higher rate taxpayer £160 in tax.