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I have a house in Barking and Dagenham which I used to live in and now rent out. When I lived there I bought two new Tempur mattresses. When we moved from the house several years ago, I left one of them there as it was a different size to what we needed for the new house.
The mattresses are now just over 10 years old and the one we took with us is still as good a new but the tenant says that the one in the rental property needs replacing and he’d like a like-for-like replacement. I’m no expert but as far as I’m aware there’s no exact test for whether a mattress needs to be replaced.
The mattress has had 10 years use, the tenant is otherwise very good, he looks after the property and pays his rent on time so I don’t begrudge replacing the mattress for him. My only worry is the tax man. I’d look to offset this cost against tax as an expense. Remember that this is a 2 bed house in Barking and Dagenham that rents for £1,000 per month. If I was to get challenged, would I be expected to explain why I’m spending x thousand pounds on a mattress for a rental property?
I’m planning on;
Getting and keeping the invoice/receipt.
Getting and keeping the delivery note showing that it was delivered to the rental property.
Taking a photo of the old mattress to show that there was a Tempur mattress there before. I’m not sure how I can prove that the photo would have been taken in the rental property though but I guess a photo can’t harm.
Is there anything else I can do to avoid falling foul of the tax man on this issue?
"...If I was to get challenged, would I be expected to explain why I’m spending x thousand pounds on a mattress for a rental property?>..."
I thought I was a pretty decent landlord until I saw that others are providing £X,000 mattresses in their £1,000-a-month rentals.
the old mattress should have been fully described on the inventory. this is your proof and if you have it there cant be an argument.
its my understanding that hmrc check inventories if there is an investigation!
I would sleep on it before making your final discision
http://www.360Property.co (No UK)
I have bought beds for £250 ish in the past that have been so good that departing tenants have wanted to buy them from me on three separate completely unconnected occasions. Why spend more?
You can claim domestic item relief on the replacement of furniture such as a mattress. The amount claimable depends on if the mattress can be justified as being broadly the same quality and standard as the old mattress. Just because it is new doesn’t make it an improvement.
If the above cannot be justified, then the domestic item relief you can claim is the lower of the cost of the item or the cost that would have been incurred if it was a like for like replacement.
In terms of an investigation, what you would be likely to be asked for is an invoice or receipt. If you are claiming the whole amount you should also retain any information on the old mattress. They are unlikely to ask for pictures but we have recommended them to clients in cases where there is a potential query over whether something is an improvement or not.
RITA4Rent (Rental Income Tax Advisors)
Specialists in Landlord Taxation
Recommended tax advisors of the Residential Landlords Association
Follow us on Twitter @Rita4Rent
clients (at) rita4rent (dot) co (dot) uk
Thanks for your responses everyone. Top marks to don frump - " I would sleep on it before making your final discision". Funily enough that would also allow me to judge if it does need replacing or not. ;-)
Have a good weekend all.