Tax deductables

Hello. As a landlord, when I’m filing tax on the rental income, can I deduct the cost of :

  1. Repair to balcony door
  2. Repair to dishwasher
  3. Replacement of washing machine
    Thank you!

Yes
Any repairs or replacements are tax deductible. Replacements should be like for like which means you can’t replace a kitchen lino with an oak floor as that would be classed as betterment and the whole cost would not be deductable.

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Receipts and proof of payment will be required.

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Yes to all three provided the washing machine is not a big upgrade on the existing one, in which case you would have to claim only a portion of that cost.

Sorry this is all new to me.
But so you can either take the given £1,000 excess/deduction OR deduct the cost of repairs and replacements - not both, right?!!?

I have an accountant do mine but the way I understand it is you don’t pay any tax on the first £1000 of profit. So you add up all the rent you received and take away all your expenses. If you are left with 6K of profit you would pay tax on 5K.

You are also given a £1000 tax relief on investments and savings. The government are good like that🙂

Hi thanks.
Hmm… That’s interesting… when you’re completing the form online, if you’ve allocated the £1,000 exemption, when you try to enter any amount for repair and replacement deductions, you get an error message saying you cannot claim any deduction if you’ve claimed the £1000!

I am not 100% sure how it works. The way I understood it is the government allow you to keep the first £1000 of income tax free. This applies to interest earned on savings, investments and rental income. It’s meant to be an incentive from the government to save, invest and rent out property. Like I said in my previous post I use an accountant to file my tax return.

I have not heard of this 1000£ free of tax on rentals . But then I use an accountant as well so only want to know how much tax to pay.

I have just posted an extract from the government website which is being moderated. It states you can claim £1000 or your expenses. Not both.

I was wrong with regards to rental income although interest from savings and profits from investment they do allow you to keep the first £1000.

Basically if your expenses are less than 1k claim the 1k allowance, if more than 1k claim the actual expenses with receipts, invoices and proof of payment .You cannot be paid for your own time.

This exert is from the government website. It seems you can only claim on or the other. My mistake…

Property allowance

You can claim the property allowance and get up to £1,000 a year tax-free property income.

If you claim the property allowance you cannot claim a deduction for your expenses.