Can you please help me with my Landlord allowable expenses question?
I've been asked the question if a client can claim subsistence while living in a property whilst doing repairs after the previous tenant wrecked the house. The landlord home is miles away from the property and it was easier to be on site for six weeks whilst getting repairs done ready to be rented our again.
Daily subsistence e.g. £5 paid to cover food/lunch etc
I've tried to search this but can't seem to find anything. Any advice or thoughts would be grateful.
Interesting Alison, I've not come across this but my inclination is to say claim it. To my mind it is a business expense. I would steer clear of round sum claims though and keep receipts of actual trips to the greasy spoon! Equally I'm unsure that if your client popped to Sainsbury's and bought some bread and cheese and made sandwiches that that would be allowable, in fact I think it would not. I'd be interested in hearing other opinions too.
The tax mans view is that you have to eat to live, not eat to work, and subsistence is usually only available to itinerant workers.
I'm assuming that there were no cooking facilities onsite? If there were the answer is definitely no.
If not then I agree with Rob's argument but I'm also mindful that property letting is not a business as such and that only certain things are claimable.
-- Edited by Leger on Friday 15th of January 2016 06:06:21 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Interesting point John and could be right. The rules as I seem to recall for an employee (and obviously this is not an employee, but may be the same rationale gets carried forward) is that HMRC will allow if you are not in your normal working pattern and that the cost of the meal is an added expense, i.e. more than it would normally cost you, so the cup of tea you make might cost 10 pence but go to the cafe and it'll be a quid. This is where my 'don't make your own sandwiches' thought process comes from and an extension of that would be not to cook a meal. Carl Bayley who is a property tax expert says subsistence is available for example if you are having to visit your properties out of town or indeed if you are off looking at properties. The normal duality rules would come into play.
Yes it's interesting and without a definitive answer I would be inclined to claim and argue later!
Agreed John about the similarities.What chance do we have when a famous actor's advisor says one thing HMRC disagree and the first tier tribunal then revert back to the original claim only for it to be largely over turned by the upper tier! And even then it looks like the taxi/meal claims potentially failed due to the lack of receipts! My head hurts and I'm going home!
Carl Bayley who is a property tax expert says subsistence is available for example if you are having to visit your properties out of town or indeed if you are off looking at properties. The normal duality rules would come into play.
Yes it's interesting and without a definitive answer I would be inclined to claim and argue later!
Just did a quick search on subsistence for Landlords in light of your comments and his name cropped up.
Can't say I disagree with your last paragraph either, but would inform the client that HMRC might not be of the same opinion
-- Edited by Leger on Friday 15th of January 2016 10:49:13 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
