Landlords - owner maintenance question.
Discussion
Because I didn't fancy being ripped-off to the tune of £220 to cut back a few branches of a tree in a rental property I own, I ended up doing the job myself. Question is, is there any way I can charge my labour to myself as the property owner, such that I can offset a sum against rental income for tax purposes?
I am not self-employed or own a business, so I suspect the answer is no but thought it may be worth asking landlords on here who may have come across this themselves.
Thank you.
I am not self-employed or own a business, so I suspect the answer is no but thought it may be worth asking landlords on here who may have come across this themselves.
Thank you.
AlexanderV8 said:
Because I didn't fancy being ripped-off to the tune of £220 to cut back a few branches of a tree in a rental property I own, I ended up doing the job myself. Question is, is there any way I can charge my labour to myself as the property owner, such that I can offset a sum against rental income for tax purposes?
I am not self-employed or own a business, so I suspect the answer is no but thought it may be worth asking landlords on here who may have come across this themselves.
Thank you.
No you cannot deduct your labour costs, although you can deduct the costs of materials and your expenses, for both getting to and carrying out the job, so fuel, saw, hire ladder, and your partner's wages for holding the ladder etc. etc.I am not self-employed or own a business, so I suspect the answer is no but thought it may be worth asking landlords on here who may have come across this themselves.
Thank you.
The missus already suggested that but they are good tenants and it's the taxman I want to extract money from, not them. Those thieving scoundrels would only let me keep a bit of the increase anyway. 
If you charge for your time, you are technically creating another source of income which by rights should be declared on your tax return
In practice your business is paying you to do a job, somewhere along the line the revenue would expect to see a portion of the payment received by either you or A N Other
Unless of course OH or other family member who earns below the tax threshold is paid to carry out the work and therefore any tax liabily is avoided, they would however technically be required to declare the income
Just claim for materials and accept it's part of being a landlord if only on a small scale
In practice your business is paying you to do a job, somewhere along the line the revenue would expect to see a portion of the payment received by either you or A N Other
Unless of course OH or other family member who earns below the tax threshold is paid to carry out the work and therefore any tax liabily is avoided, they would however technically be required to declare the income
Just claim for materials and accept it's part of being a landlord if only on a small scale
Thanks Simon. I'm sure there's a dodge loophole somewhere in what you say regarding family members under the tax threshold. I wouldn't mind betting this is how landlords with multiple properties keep liabilities low. Setting up a loss-making maintenance company with relations as directors suddenly seems quite appealing!!
Alex
For the purposes of clarity incase revenue are reading this, I was suggesting there may be a legitimate and cost effective way of utilising revenue approved tax thresholds to your/family benefit. Whilst staying the right side of tax avoidance and not tax evasion
There now i feel better, knowing I have done my bit to assist the revenue in ensuring tax is paid where due
For the purposes of clarity incase revenue are reading this, I was suggesting there may be a legitimate and cost effective way of utilising revenue approved tax thresholds to your/family benefit. Whilst staying the right side of tax avoidance and not tax evasion
There now i feel better, knowing I have done my bit to assist the revenue in ensuring tax is paid where due
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