Useful Buy2Let Information & Tips.... 

 

…Examples of Revenue Expense Items - The following items of expenditure are “offsetable” against your taxable income:- Mortgage interest - every April your mortgage lender will post you an annual statement showing total interest paid in that tax year. This is proportionately your largest allowable expense that helps to reduce your taxable income. To qualify to offset interest you must let your property for more than 26 weeks a year. Letting Agent Fees – your agent will post you a summary of the letting agent fees (if you use a letting agent at all). These will include VAT. This document will include your rental income received and the deductions for their property management service. This expense will probably be your second biggest expense behind mortgage interest. Repairs & Maintenance – repairs means ‘the restoration of an asset by replacing subsidiary parts of the whole asset’. Most general repairs are deductible; For example, mending a fence, repairing a broken washing machine, gardening services, the annual CORGI Gas Inspection, or treating wood rot. It does not apply for repairs before the tenancy has begun i.e. soon after you bought the property and are starting up; it only applies to ongoing repairs during a tenancy. Insurance Premiums – all premiums for cover of buildings and contents, legal expenses cover, income protection or rent protection can all be included. Legal and Professional Fees – if you need to employ a solicitor during the rental period for services related to your rental property, you may include these costs as an allowable expense. Advertising Expenses – to attract new tenants yourself (i.e. without using an agent), you can include the cost of advertising as an expense. This may include cost of an advert in a newspaper on or a property web site. Traveling Expenses – this is the cost of petrol or train tickets etc to travel between your home property and your rental property i.e. the running costs. It does not include the actual cost of buying a car. Keep a record or log sheet of mileage on every journey. If you administrative office for your rental business is outside of your home property, you will, NOT be allowed to include traveling expenses from your home to your rental property. Accountancy Costs - the cost of your accountant’s services (for producing your annual accounts and completing your self assessment form) is an allowable expense. Remember to keep all of your receipts (for everything for five years) otherwise your accountant will have a very difficult annual job convincing the Inland Revenue about the authenticity of your accounts. Cost of rental collection – in the normal course of business. Interest on Loans - Interest payable on loans used to purchase land or property (used in your letting business, or fund repairs, improvements or alterations), is deductible. Use of Home as Office – you may deduct a proportion of the cost of heating, lighting and telephones etc from your home ‘office’, to manage your rental business. Beware; the same proportion of your home may then be liable for Capital Gains Tax if you sold it. Therefore, it is wise to request a formal written valuation from a local estate agent. You should weigh up carefully the benefit of minimal home office expenses to offset versus the potential huge CGT liability should you choose to sell your home in the future. Bad & Doubtful Debts - may be deducted as a revenue expense.

 

DISCLAIMER - we do not offer financial advice - all words are 'information only'

 

 

Mortgage Brokers in London.... 

 

A and J Financial Services:-    221 High St North, , E6 1JG

Aim Financial Services Limited:-    Fofraim House,  London, , NW4 2EF

Ambassador Finance and Insurance Services Limited:-    Trafalgar House, , NW7 3SA

Asc Partnership Plc:-    3 Park Road, , NW1 6AS

Aslan Financial Services Limited:-    286b Chase Road, , N14 6HF

Bendels:-    27 Willesden Lane,  Kilburn, , NW6 7RD

Bolt Allen Mortgage Specialists Limited:-    14 Buckingham Street, , WC2N 6DF

City Financial and Mortgage Services Limited:-    Cara House, , N15 6RD

Credit3 Limited:-    470 Green Lane,  Palmers Grn, , N13 5PA

D and J Watson:-    12 Ivor Place, , NW1 6HS

Emu Insurance and Mortgage Brokers Limited:-    Unit 41 Camberwell Business Centre, , SE5 7HN

Gallantknight Finance Limited:-    923 Finchley Road, , NW11 7PE

Intelligent Risk Services Limited:-    Craven House, , WC2B 6PA

Johnhugh Limited:-    2 Cobden Mews,  Wimbledon, , SW19 1RH

Knight Insurance and Investment Services:-    286 Chase Road,  Southgate, , N14 6HF

London Financial Services Limited:-    Victoria House, , EC2A 4NG

London Mortgage Advice:-    407 409 Holloway Road, ,

Mortgage Centre I F A Plc:-    25 Eccleston Square, , SW1V 1NS

Mortgage Partner Services Limited:-    City Bank House, , EC1V 9QQ

Oak Residential Limited:-    17 Lewis Gro,  Lewisham, , SE13 6BG

Openet Plc:-    52 High Street,  Harlesden, , NW10 4LS

Primrose Associates Limited:-    18 Southampton Place, , WC1A 2AJ

Q L S Home Loans Limited:-    835 Harrow Road, , NW10 5NH

Scotlife Home Loans No 2 Limited:-    2 Baches Street, , N1 6UB

Simpler Mortgages Limited:-    819 Romford Road, , E12 6EA

The Mortgage Times Limited:-    6th Floor Corinthian, , W1T 2RY

UK First Time Buyer:-    77 Oxford Street, , W1D 2ES

Unicorn Life and Mortgage Consultants:-    121 Mitcham Road, , SW17 9PE

 

 

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