HMRC Admin 19 Response

Hi,

You can deduct expenses from your rental income when you work out your taxable rental profit as long as they are wholly and exclusively for the purposes of renting out the property.

As long as the new heating system is the closest equivalent in capability, then the replacement system will be a revenue repair. However, if the previous owner disconnected and removed the system, this would suggest that the system was not in place when you purchased the property. If that is the case, then this would be a capital expenditure.

Provided the oven is replaced with a similar standard oven and does the same job as before, then this is a repair and the expenditure is allowable. The replacement beds will also be allowable expenditure. Accountant’s fees incurred through your rental business are an allowable expense. Further information can be found here:  

BIM46920 - Specific deductions: repairs and renewals: what is a repair: different materials

BIM46925 - Specific deductions: repairs and renewals: what is a repair: changing technology

Thank you.
 

Hi,

If you want to change the split of income from jointly owned property to unequal shares, you will need to complete a Form 17.

You will also need to provide evidence that your beneficial interests in the property are unequal, for example, a declaration or deed. You can see further information here:

Declare beneficial interests in joint property and income

TSEM9230 - Ownership and income tax: legal background: joint ownership - presumption of joint tenancy

Thank you.

Hi,

The Gas Safety & Legionnaires certificate is an allowable deduction and would be recorded under repairs and maintenance.

Thank you.

Hi,

You will need to contact the Let Property Campaign team for advice:

Let Property Campaign

Thank you.

Hi,

You should record your loss on the property section of your Self Assessment tax return.

Rental losses made in a particular tax year can be carried forwards and set against future rental profit in the next tax year.

Property business losses can only be set against general income in limited circumstances. You can see guidance here:

PIM4210 - Losses: setting losses against future profits

Losses made in one business cannot be carried to another rental business. You can see information here:

PIM1020 - Introduction: what is a UK property business?

Thank you.

Hi besart k,

In relation to transferring 80% of the rental income to your wife and putting a declaration of trust in place, the transfer of funds would be a personal agreement between yourselves, with HMRC only requiring to be notified of the total income and any expenses incurred based on that split, in this case 80/20.

In terms of particular formatting to the declaration of trust, you can see information here:

TSEM9520 - Ownership and income tax: express trusts - written declaration

Thank you.

Hi,

If you import laptops in to the UK from overseas then you are unable to use the margin scheme. The margin scheme is used where you buy goods where the VAT has not been charged on the full sale.

In the case of an import there will be import VAT charged on the items at the border so this disqualifies you from being able to use the margin scheme. You can see information here: 

Check if you can use a VAT margin scheme if you import from, or export to, countries outside the UK

So if you import goods from overseas you would need to charge VAT on the full sale of the item rather than calculating the margin.

Thank you.

Hi,

If you are supplying certain services from the UK to a business in the EU then the the services would be outside the scope of UK VAT and would be accountable by the business there.
However as the UK is no longer in the EU and you are not VAT registered there is no requirement to state on the invoice that it is a reverse charge sale.

You can see see the guidance here:

Reverse charge

The place of supply rules for services

Thank you.

Hi,

If you are changing the legal entity of the business then you have a choice between cancelling the VAT number as a partnership and applying for a new one for the sole tradership or treating the change as a change of legal entity

If you want to keep the same VAT number then please see the guidance below:

Register for VAT

If you do not want to keep the same VAT number then please send in a VAT 7 to cancel the partnership and a VAT 1 to register the sole tradership.

Thank you.

Hi,

These costs incurred would be outside the scope of VAT and so would not need to appear on a VAT return.

You would need to speak to the US authorities to see if you are able to claim back their sales tax.

Thank you.