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I'm a residential landlord and rent three rooms in my house. Last year I moved the lodgers out for 9 months while I carried out building work. I estimate that 20% of the work was for repairs and 80% was for improvements. So I am guessing that I can claim 20% of my council tax and utilities, and 20% of the building costs, during these nine months as expenses against my income. Is this the right approach, can you tell me? I will probably use the "Method A" system of calculation, ie., actual profits, instead of Rent-A-Room allowance.
Thank you for any advice on this.
Thanks very much!
Thanks much for your help.
Can you also help with another foreign income question?
I am self-employed in the UK, but I have work expenses in the US, such as the cost of my US phone (the basic cost of a phone contract there is about 5 times that of a UK phone contract, it's horrible). These US expenses have been declared on my US tax form as deductible expenses. Can I also declare them on my UK tax returns as deductible expenses against my UK income?
Hi. Thanks for help with these questions - I couldn't find the answers anywhere.
I have received dividends of about $3,500 from the US. I think I should include these on my Self-Assessment form under Foreign Dividends. However:
(1) I file tax returns in the US too, but I am late with mine and I don't yet know how much tax I will be charged on these dividends. So do I list these as foreign income on my UK Self-Assessment form, but leave the "tax paid" box blank? And do I check or not check the FTCR box, since I don't yet know if they will be taxed? Should I submit an amendment when I know the taxed amount?
(2) One of my dividends is a Tax-free, Exempt-interest Dividend of $2,050. So I will not pay tax on it in the US. Therefore I assume I don't need to claim FTCR on it. But how can I avoid HMRC taxing me on it? Do I just say "Tax-Free" in the reference box? The form won't let me put 0.00 in the "tax paid" box, I have to leave it blank.
Thanks for help with this.