Mauree n Treadwell

Can you please explain how we can challenge the HMRC decisions in respect of the treatment of the running of houses in multiple occupation as an investment activity when we consider it to be a very active business. I have run both HMOs and Holiday lets. HMOs are no less time consuming than holiday lets but are treated as investments whereas holiday lets are treated as business. Is there a process for this or do we begin the challenge starting with our MPs?

I need to amend a final year submission as there is a minor pension payment error. I read the instructions on .gov and it says resubmit the final year summary again with the corrected figures. But when I go to BASIC PAYE and try to do that, there is no option. It just says 'submission success'. I then spent an hour on the phone trying to sort this out, but when I got through, the assistant said she couldn't hear me and hung up. I tested the phone afterwards and it was fine. So there is a problem getting support at the moment, as I am sure you are aware. I've spent about three hours on this so far so if you could help that would be much appreciated.

Thank you for the response but, my apologies, I am still slightly confused. You say that capital allowancescan be claimed but then say it can be claimed as revenue expenditure within box 29. Am I therefore correct in thinking that tools used in a rental business who meet the 'wholly and exclusively' rule are revenue? Thank you,

For landlords who are self repairers, what is the tax position on small tools? Are they capital or revenue? Given that some small cheapish tools (eg paint brushes, budget saws) would be used up on a single job, I would imagine these could be claimed as part of the repair. What about bigger items (costing in the £10.00 -£50) They should be tax deductable somewhere in that they are used 'wholly and exclusively' but not clear where? Please could you advise?

Can you advise whether a person who owns let properties can also claim a trading allowance for an entirely unconnected hobby business? I thought not, but it seems that HMRC treats rental businesses as slightly different from both investment income and trading income so I am not 100% certain. Many thanks

My son is considering taking a second lodger in his house. However, we are not clear on the capital gains tax situation. I understand that if the lodgers live together communally and no-one has 'exclusive use' of any of the property, (i.e. a let under licence) then capital gains tax unlikely to be due. However, if the two lodgers each have exclusive use of a room but share the kitchen and lounge/diner with the owner, then capital gains for a six room house would be 2/6=1/3 of the total capital gains due. What happens to private residence relief? Is that also reduced by 1/3rd? Is this correct? if not, please could you clarify?

Thanks so much.

Can you clarify the position with regard to the treatment of fire doors and alarms as required by the local authority/Fire door regs in HMO properties? It had always been my understanding that these could not be claimed as expenditure in rooms but could be claimed in the common areas of HMOs as capital. However, I heard there was a new decision that since these are deductable when subject to enforcement under Fire Precautions Act 1971, it was inequitous not to allow the same deduction for those who seek to legally comply without enforcement and so there was a new 'note' to that effect. They would seem to fit as 'wholly and exclusively' for the use of the business and add no value so please could you clarify exactly what heading this expenditure should be recorded as? Thank you.