Rental properties

jamescafc

Have just switched my flat from a residential to buy to let mortgage which now means I'm bringing in a fairly decent income that I understand is subject to income tax. Nothing major but around £500 per month.

Is anyone else in the same boat and able to shed some light on how complicated the declaration process is? Is it worth using an accountant to do this for me to ensure I am offsetting/disclosing all tax avoidable costs?

Any/all info gratefully received.

Cheers

PrincessFiona

I use an accountant - the first year I had to do it I was overseas and left it late so it was the easy option. The basic figures are fairly straightforward but I found they were able to help with the allowances and expenses side which can make a difference to your profit

Redrobo

Not really complicated. Running costs such as boiler safety certificate + any repairs and replacements like carpets allowable against profit. Improvements such as conservatory not allowable. Loads of help on Revenue and Custom site.

HardyAddick

No need for an accountant. There is a pretty clear form you fill out when doing your tax return - you can down load it. If you are on paye you need to tell the Revenue as they don't automatically send you a tax return. You can offset loan interest ( not capital repayments) plus running costs, Agents fees etc. you cannot claim for improvements thought but these are unlikely.

Saga Lout

I use an accountant, but I also have a limited company so he was already looking after my tax returns. I'm thinking of closing the company and I will review whether it is worth using my accountant after that.

I've had my fingers burned in letting my property and my view is that it's not worth doing with just one property because when there are problems with that property or when it is empty you have a sudden drop in income. If you have 2, 3 or more you should always have money coming in. However, if you like the idea of owning properties, sorting out tenants' problems, re-decorating every few years, go for it, if not I'd say you're better off investing the money.

I was extremely lucky last year when a drain collapsed at the property - the bill was £4,500, but my insurance broker (who is an old school friend) managed to get the insurance to pay up. Otherwise that would've been 5 month's rent down the drain (literally).

PL54

I use an accountant - much less hassle and she can be quite creative when finding costs to negate income. Her fee goes down as a cost as well.

HarryHutchens

I do it myself it's very, very easy - as long as you record everything as you go. You can even do it online I think it's only like a one page form or something


Been a landlord for 18yrs and despite the occasional problem, 95% of the time it's free money. It does help to keep some money aside for unexpected repairs etc. I have two properties which helps with cash flow.

DaveMehmet

We've been talking about buying a one bed flat somewhere to rent out until my daughter is old enough to pass it onto. Really wish we'd kept the one we lived at in north London that we sold to buy our place. Could have just about done it at the time but would have been at the limit with no comfort zone.