Just some specific questions on tax duction. Appreciate people will say find an accountant, but i just want to focus on DIY self-assessment. So, question is, assuming the item is eligible what is count as acceptable proof for tax deduction?
Can a builder’s receipt for painting counts for example? e.g., some builders offer cheaper by not creating an invoice and some wanted pay in cash so it results in either no bank statement record or simply transfer to other personal account, but you have a receipt.
Also, for Gas Safety certificate. assume you got it 01/01/2022 and the first day of expiry is 01/01/23, so does it count as the latest day to get your gas certificate if the new check is done on the 01/01/23?
I have receipts for builders work ,painting counts as tax deductable, I also pay some guys who never give a receipt. But I have a n accountant and a few tenants pay me in cash also. I put it all in my book to the accountant and I am believed… If builders are on the fiddle that is their problem not mine… gas is a 12 month certificate just get it done a little earlier. You now need a carbon monoxide alarm in the room of the boiler
It’s self assessment. You assess your own tax. Unless HMRC asks, you don’t need to show anyone any receipts, but if they ask, you might have to show evidence that you have paid it.
So, for example, if you bought paint on your debit card, but lost the receipt, I’d still claim in and hope that HMRC would accept the bank statement as evidence of the payment.
If you are paying in cash and not getting a receipt, that would be difficult. You’d probably have to give details of your contractors to HMRC and that would probably then cause them a problem with HMRC if they haven’t declared the income.
So, if someone wants paying in cash and won’t give you a receipt, I probably wouldn’t use them again! If they give you a receipt, then just take it at face value and assume they are declaring it for tax and that they wouldn’t have a problem with you passing their details on to HMRC.
Gas Certificate must be renewed before the end of the year, in your example, by the end of December. You can get it done up to 2 months before the due date and it is supposedly valid to the same due date the following year.
Fire alarms and CO detectors ought to be checked each time you visit the property, e.g. at say six monthly inspections. The CO Detectors must be placed near any fire unit with flames, except a cooker, and near the boiler. That includes fireplaces that are not in use (and told the tenant not to use)! You are responsible for replacing the unit and the batteries.
Keep a record of all income and expenditure by the date it is paid and received, and keep it for seven years after the tenant has left, ideally supported by receipts or bank statements. Theoretically, they are to be kept for six years after the last contact you made with the tenant, so if you have ongoing issues with them after they have left, then the retention period is from when you last contacted each other. If you are a business, the business may have a different tax year from the Self assessment tax year, and may not use actual dates of expenditure and receipts.
If it is only one property, then all you need is the sum of income and expenditure to quote in your self assessment (S.A.), but if you are a portfolio landlord, you will have to categorise these as stated in the listing when you complete your return.
Beware, I hope we can continue with the old system next year onwards, but in the tax year 2024-2025 MTD (Making Tax Digital) may be compulsory: you have to use a specialised software company to submit your rental business return directly to HMRC.
I usually leave leftover light bulbs from bulk buy so that they can use. Probably I will chuck some batteries next to alarm too! Next thing is providing paracetamol to Tenants probably in case they have a head ache! Not sure why we are not paying for the electricity, as they might trip and fall in the dark… Please do not get me wrong I am more than happy to leave a life time supply of batteries. My frustration is being almost a baby sitter for a tenant with all these silly rules. Unless it is HMO which I never do!!!
I called the Fireangel technical department about this issue and was told that their replaceable battery CO alarms work fine in bathrooms. Ive installed one in a bathroom where the boiler is located in a bathroom cupboard.