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  • expenses

    Dear HMRC, For my rental property, The old fire alarm and carbon monoxide are broken as it does not buzz with clicking the test button and an replacement for the same price was purchased. As this is wholly and exclusively for the safety of the rental business. Would this be an acceptable repair expense?
  • RE: Expense for rental

    Dear HMRC, I am confused, the driveway is rented out as part of the residential property, and it is my responsibility to maintain the property and carry out repairs, hence shouldn't removing weed from the driveway to allow tenants continued usage of the driveway counted as wholly and exclusively for the business, it would also make it more attractive for future tenants to see that the property is well maintained? Please correct me if my logic is flawed. Many thanks
  • Expense for rental

    Hello, I am renting out a whole residential property which comes with a small driveway. The drive way has some weed on it, which the tenants are not responsible for clearing. I bought 50 pounds worth of weedkillers to remove the weed. Would this count as an expense under the repairs?
  • RE: Pension as a 40% tax payer

    Hello HMRC, 1) So how can someone find out the date that the direct debit is authorised? 2) I only exceed the 40% threshold by a small amount in 2021-2022, meaning that the extra tax relief I will be able to claim back is miniscule, my gross annual contribution including employers contribution is less than £3500 and my lifetime contribution stands at only £9500. So I am at no risk of exceeding these allowances, in scenarios like this, do I have the option to leave out my pension contributions on my self assessment and opt to not claim the miniscule amount of extra relief? As I feel like the hassle of trying to ask employers and pension scheme for all these dates just seems like it is not worth claiming back the extra little bit of relief. Once again, sorry for the long post
  • RE: Pension as a 40% tax payer

    Dear HMRC, Thank you for your response, Please clarify these 3 points for me: 1) From your response, Does the "deemed date of your employer's payment" refer to both the employer and employee contributions? 2) From HMRC manuals referring to deemed date for Relief at source schemes, "For example the date authorised to draw money by direct debit from the employer’s bank account" - Does date authorised to draw money by direct debit from the employer's bank account mean the same thing as the date that employer's bank account show the direct debit leaving the account, or is it that the date of authorisation is a separate thing that occurs prior to the actual direct debit amount leaving the bank account. 3) In my scenario, since the direct debit left from my employers bank account on 20th April 2021 and NEST received the lump sum pension contribution payment on 20th April 2021, for deductions taken from my salary in jan, feb and March 2021. I would claim for higher rate tax relief on these 3 payments as part of the 2021-2022 tax year self assessment and not 20/21 tax year as HMRC views these pension contributions as being made on 20/04/21 which is part of 21/22 tax year. Once again, Many Thanks. RitchieA
  • RE: Cashback from paying council tax

    Thank you for your response, By deduct the rebate amount, you mean that for example I paid 500 pounds for the council tax bill this year, but I got 150 pounds rebate from the council, on my self assessment, I would put 350 down as the expense for rent rates category. (So instead of claiming 500 as expense, I would just claim 350). Many thanks
  • RE: Pension as a 40% tax payer

    Dear HMRC, I have managed to get a document from NEST, which shows my contributions each month etc. I started a new employment in January 2021, payslip shows deduction of pension each month, from jan, feb and March 2021 and I was notified by nest that my enrolment was successful in late February 2021, but the contribution arrived in NEST on the 20th of April 2021 as a lump sum, for the 3 monthes of jan feb and March. My employer’s direct debit to nest also left their account on the 20th of April 2021. This is a new tax year. According to HMRC manuals: Member contribution made via employer deduction through payroll: The date of payment for a contribution made under Relief at Source, for example to a group or other personal pension scheme, is the same as a payment the member makes direct. For example the date authorised to draw money by direct debit from the employer’s bank account or the date the employer’s cheque is received. “Same as a payment the member makes direct”, in my case, since the direct debit left from my employers account on 20th April 2021 and NEST received the payment on 20th April 2021, for deductions made in jan, feb and March 2021, I would count these 3 payments as part of the 2021-2022 tax year, regardless of what my payslip says, would that be correct?
  • Pension as a 40% tax payer

    Dear HMRC, I am employed and do a self assessment return for rental income, this year the combined income will exceed the basic rate for the first time, I am currently paying pension into NEST with employer and employee contributions of combined 8% from my salary. Do I need to fill in pension information on my tax return, if so, do I need to include the employer contributions as well or not? And where can I get the exact figure for how much I have contributed? Thank you .
  • Cashback from paying council tax

    Dear Sir/madam, I currently file self assessment for rental income, last year I paid for council tax for my rental property during periods of vacancy whilst finding new tenants using my personal Santander 123 account, which gives you cash back of up to 1% or £5 max a month if you pay 2 pounds a month fee and have at least 4 direct debits coming out of that account. Its a small amount, maybe 10-20 pounds over the year, but is cashback like this non-taxable or would I have to list it as income or deduct the amount from the bill of council tax? Similarly, this year I received council tax rebate of £150 for the property too as I had still been paying the council tax in april, is that taxable/I need to take 150 pounds off the council tax bill as an expense? Many thanks.