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Post Info TOPIC: Renting a property


Expert

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Renting a property
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Hi Everyone,

I have a client who rents out a property, instead of going through an agent  who charge I think about 12% management fee for managing the property and making sure the client pays each month, my client is doing all of that herself.  All the agent does is charge a one off fee for finding a client, and when that client leaves they then do the same again and find her a new one.  What she would like to know is can she put in a claim for any amount say 10% for all her troubles as shes had to go to the property quite abit, sort the heating out in the winter and just generall be on hand just incase the client complains about anything (which they do I believe).  Also can she claim mileage as she has had alot of trips back and forth, luckily its only a few miles away so we are not talking an awful lot of money.  At the beginning she was down there alot decorating,(she has kept all the receipts),  its years since I rented out a property, but I seem to recall that when I did it I claimed 10% of the furnitre (mine was furnished), for wear and tear, is this still allowed??

The client doesn't want to use an accountant and he just happy for me to do the bookkeeping and just get the paperwork in order so she can then go on line and file it herself.  All she has the property for is abit extra income to help with her pension.

 

Many thanks



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Amanda



Expert

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Hi Amanda

If it is furnished then yes claim 10% of the net rent as an allowance but no capital allowances are allowed

http://www.hmrc.gov.uk/manuals/pimmanual/PIM3200.htm

might help

I would claim mileage allowance as normal and also maintenace costs, including decorating

http://www.hmrc.gov.uk/manuals/pimmanual/PIM2020.htm

 

The two links should cover what you need to know for general allowances

HTH

Bill

Quick edit: as you mentioned furnished the above relates to furnished rentals, if it isn't then claim normal allowances as in any other trade



 



-- Edited by Wella on Monday 16th of May 2011 01:17:07 PM

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gbm


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Your I think your client is alluding to is, can they claim 10% for THEIR time, seeing as they don't use a letting agent:

No!

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Regards,
Nick

Website: www.gbmaccounts.co.uk
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Expert

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Hi Nick,

Yes thats what I think she was saying, I thought not but thought I should check to make sure.

 

cheers



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Amanda

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