Tax Tip for the Self Employed: 3 Top Tips for Landlords

Tax rules have always changed, but never have they changed so much than they have for landlords recently.  Here are 3 top tax tips for landlords to help reduce your tax bill that you may be able to utilise as well as claiming for all allowable expenses:

Claim for Landlord Travel and Mileage

As a landlord you can claim for the costs of travel connected with looking after your rental properties furthermore from 6 April 2017 HMRC has agreed that landlords can claim for mileage when they drive their own cars.  So if you travel around to carry out maintenance, buy materials or visit your tenants then you should be able to claim for the cost of travel against your taxes.

The rules are really strict and you can read more about Claiming Landlord Mileage Here and download a mileage claim template that you can use to record your travel.

Claim for Use of Home

If you manage your own properties from your home then you can make a claim for use of home.  This is either a flat rate amount or a proportion of your actual home bills like rent and heating which you can set against your rental profits to help reduce your tax bills.

The catch is you need to spend more than 25 hours a month to make a flat rate claim and if you use a managing agent then you may not be able to claim for use of home, since your agents office may be considered the location of management.  Read more about Claiming for Your Home Office Here and the two different ways you can make your claim.

£1,000 Property Allowance

HMRC introduced a little tax break a couple of years ago called the Annual Tax Allowance for Trading and Property Income.  If your rental income is less than £1,000 then you don’t need to pay any tax on it, better still if you don’t currently submit a tax return then you don’t even need to let HMRC know about your income.

The £1,000 property allowance is based on rental income not rental profits and you can find out more about the Property Allowance as well as how you claim for it here.

Ultimate List of Allowable Expenses for Landlords

Anita Forrest
About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - a UK small business finance blog where she shares help and advice with the self-employed community to make topics like registering a business, bookkeeping and taxes easy to understand.