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rachel_mclean


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FHL expenses
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H

I'm sorry I think I may have started asking about this before, I've searched for my post but I can't find it.

 

FHL expenses

I know about and how to deal with repairs & maintenance, capital allowances for white goods and furniture etc BUT I can't find a straight answer for things like bedding, cutlery, blankets, cushions, door mats, small appliances (iron, kettle etc) - are these allowable expenses for a Furnished Holiday Let , that has started in the tax year so they are new for set up not renewals, if they are allowable what should I record them as? expenses - furnishings and expenses - small appliances.

If they are replaced in the future will the new items then become renewals?(expenses - renewals)

It definitely is and qualifies as an FHL - this HAS been checked.

I'm also wondering how/where people learn all of this???? I'm reading through all HMRC manuals, sheets from accountants etc and I'm getting really teasy not been able to find a straight answer, drives me nuts.

Thanks in advance for any help. 

Rachel 



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Rachel
rachel_mclean


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Are there any courses that you can do to learn about FHL's?

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Rachel
rachel_mclean


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ha ha, got the ATT books outs - FHL's (in date - 2016 exam sittings)

'finally you should note that a landlord cannot claims wear & tear allowance in respect of furnished holiday letting. Instead, capital allowances will be available on the furniture, FURNISHINGS and equipment in the property'

To me this says furnishings - which are the items I listed above are to go as capital allowances so I'll set up furnishings as a fixed asset account, is this right? I don't have to depreciate them do I? this would be near impossible.

I'll tell you what if anybody rings me with an FHL again to do their tax return I'll shall be saying sorry no, it's so complicated

 



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Rachel
Leger


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Hi Rachel 

I would be prone to list the little things as expenses rather than fixed assets, although it could be argued that the first year, you lump them all together under fixed assets (Shaun suggested that when it was tools for a workman) 

I guess it makes no difference tax wise as you would claim AIA anyway.

 

Please read my signature as I'm no expert in this area.



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 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
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