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  • Tax

    Can I offset vehicle cleans & damage repair?

    Hi all,

    I used my car to move rubbish from a tenancy a few weeks back. As a result, now, I have a farmyard for an interior and the rear seat fold-down has broken.

    Can expenses to clean and repair, be claimed against tax? The car is private, although I claim travel to and from the house.

    Regards

    Udhi

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    Hi Udhi,

    You can offset any business expense legitimately incurred for you to run your properties.

    HMRC is not going to be worried about a minimal amount like this imho.

    Not sure if you are aware, but no human eye ever looks at your tax return.  They are processed by a computer that looks for anomalies and is programmed to flag up any tax return that seems out of kilter with previous returns or that has something "strange" about it.

    So keep things reasonable and the computer won't be flagging you. Wink

    See - How to avoid a tax investigation by HMRC

    Also - New HMRC "supercomputer" tracks property data

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    Ok let’s ask this question do you have a waste disposal licence?

    if you haven’t, you need one to move rubbish from your BTL property

    Second question  - do you only use your car for business 100%?

    You can claim mileage of 45p a mile to do business but you need to keep a log

    As to a cleaning bill, you will have to look at the percentage you use for your own time and the percentage you use on business and claim only the the percentage you use for business , but the bigger fact is do you have a licence to carry rubbish?

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Not sure I agree or understand the 'waste removal' license. - Depends on your local authority skip - recycling centre I suppose. ?

    Whenever I go there,  they're only interested in what kind of material I'm disposing of,  i.e.  Not something hazardous like asbestos ( as there are a few specialised Recycling centres, some still run by the L.A and free !   near me in kent. )

    I've never been asked, ' Is that rubbish from your own house or a Rental property, or somehow business related ? '    The recycle centres are Descibed and  sign-posted as  Household waste re-cycling,  and my rental property is, well,   a household.

    I'm not saying Disy isn't technically correct.  but.

    I accept the business relationship mentioned,  But why look for a problem.

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    A few years ago the Environment Agency came to an NLA meeting and they said you need a licence.

    All tradesmen need them not just use and that’s why most don’t take the rubbish away but leave it for the landlord to get rid

    You can be stopped by the police and challenged if you are moving rubbish.

    Council yards are getting much tighter on this topic  - my yard charges everyone £2 a bag for rubble and height restrictions at yards is now common.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Thank you both, for your advice.

    Dislexic-L, you are right! I do not have a waste disposal license!! I haven't gone to the disposal place yet (hedge cuttings that didn't fit into the recycle bin at the house). I assume that the license can also be offset? 

    The car is definitely not just to support LL business. It is my own transport social dom and pleasure(leisure?). It does have business insurance on it declaring that I have another "job" as LL  - just in case it get a claim while I am away.

    Vanessa, you make a good point re HMRC looking at previous patterns - I have been very laid back with my previous returns. I had not put a fair few repair bills over the past 10 years simply because the house was a "nest egg" to survive a meager pension, later on in my life. I figured to keep my head down, declare income and the odd BIG bill and by the time I retire, the house would have been practically paid off.

    I have only become more proactive with declaring expenses since last year and there is a marked difference in what I have to pay as tax. Thankfully, I have kept a lot of the receipts.

    Just to yourself and to all: Is there an accounts course of somekind, worth doing to keep up with all this? For example, the accountant mentioned that even my food and refreshments while visiting can be added, in addition to my stays over there (I have a property in London, live in the NorthWest, so long travels).

    Regards

    Udhi

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    Udhi,

    I have about a dozen books on Tax, but the best one I have bought ( it isn't the cheapest, £40 quid, often offers on reduced price ) is by The Property Tax Portal, by  Arthur Weller and Ammer Siddiq.   I have no connection to them and I hope this mention won't be taken as some kind of  contravention of site rules, - but I'm just being honest and trying to be helpful.

    If you read their Landlord Tax book [  title changes slightly each year ] you'll save thousands on your tax bill  - Just look at Home Office use, as an example,   instead of the paltry £4 a week that HMRC suggest you claim [ because its easier for you , ha ha ]

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    I would put this through as a legitimate business cost to return he vehicle to the state before the removal. Whether you have a valid disposal license is irrelevant for tax. Your business incurred the cost - that’s enough. If you have illegal immigrants paying rent you still need to declare it for tax (there was once a prostitute who argued that her income was illegal and so not taxable - she lost her case.)

    You should keep mileage records as well as you can get a deductible for the travel cost and the usual way is a mileage allowance.

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    Tax advisor and mortgage broker

    stuart@johnsonsca.com

    02039077022


    It’s not irrelevant,  it’s important ... and the fines can be high and I think it’s a criminal offence without one.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    I agree but for tax it’s not relevant (fines and penalties are not tax deductible). Run ones business legitimately is always best!

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    Tax advisor and mortgage broker

    stuart@johnsonsca.com

    02039077022


    Thank you for all the above, people. Valuable lessons have been learned and  Arthur Weller and Ammer Siddiq's book has just been ordered, I look forward to lots of reading and slaps of forehead!!

    I really appreciate all your time and knowledge, I have been very laid back with the declaration of expenses, it seems. My standard travels "darn sarf" are about 225 miles either way, let alone all the running around to screwfix, car parking fees, food, water etc! I have only put through about one or two this year, considering I have been wandering up and down practically every month.

    Thank you again.

    U

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