Tax Return - Tax Deductable Expenses

Discussion in 'Army Pay, Claims & JPA' started by nasch, Jun 14, 2005.

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  1. Hoping that someone might have a vague clue about this before I try to tackle the inland revenue help-line...

    Due to becoming a filthy rich landlord (I wish), I've got to fill out a tax return for the 04/05 financial year. Now, if I'm going to have to go to a load of trouble to fill in lots of forms so that Gord knows just how much cash to take off me, I might as well ensure that I get as many deductions as I'm entitled to.

    Looking at my P60, I've got £590 tax relief for uniform upkeep, and £50 for regimental subs. I've had a squiz on army and inland revenue websites, and can't find any mention of the uniform upkeep relief - but, as it happens, I've spent rather more than £590 on uniform type stuff over the last year (also spent more than £50 on regimental subs - I take it that only the compulsory subs are eligible for tax relief).

    The money I've spent falls into three general categories:

    a) Things I needed to buy, which are not available on issue (e.g. bivvi poles)

    b) Things I needed to buy, which are available on issue, but were not available for issue to me due to stock shortages etc (e.g. mountain boots)

    c) Things I didn't have to buy, but have a purely military use (e.g. new smock, bergan liners, etc)

    So... am I limited to the £590 that someone has decided is the average cost of kit for a year? Or, can I claim relief on additional expense incurred in categories (a), (b), and/or (c)?

    VMT
     
  2. Totally agreed!! who makes up this wishy washy figure?
     
  3. I went through this with the IR last year. Essentially you get the sum total of nothing in addition to you uniform upkeep allowance. I tried to make a claim but they replied with a very nice letter back with a demand for more money. I will dig out their repy later if need be but their arguement was based on the 'fact' that the MOD provided all the kit I needed. Now you, me and about 100,000 other individuals know this to be complete bo11ocks, but the IR don't agree.
     
  4. Make sure you get tax relief on the interest you pay on your mortgage for the rental property.
     
  5. Nasch,

    I have now sold my property but for several years I had to jump through the Self assessment form hoop. As long as you are pretty much in the parish and get your return in on time you can blag most of it. What you want is a small loss over the year. If your mortgage is not repayment, but interest only then your full mortgage payments should be deducted. And any agency, legal fees, and correspondance, repairs, bank charges etc. Pissing about with uniform and other minor tax deductions is not really worthwhile. it used to take me about 25 minutes to complete the return, which I would do as soon as I got my annual pay summary through. Then it ios out of the way. I certainly wouldn't bother calculating it myself, let the feckers in the tax office do it. I think the most I had to pay one year was 50 quid. Once you complete a tax return, you get one every year, even if you have sold the property and are not in the higher band. Each year, despite having no income other than my taxed at source Army salary, the btax man still asks for about a tenner!

    UQFEGD

    PP
     
  6. If it helps,
    I keep my return as basic as possible. As Pensionpointer said collate all your expenses, insurance, agency fees, costs to visit the property, phone call costs in relation to the property etc etc, collate your income from the property and let the IR do their job of calculating.
    I pay about £80 per anum tax on about £300 profit. A small price for an investment.
    I fill the return in online, saves paperwork and is much quicker.

    Interestingly, not all repairs are able to be offset, if for instance a wooden window or door requires replacing then it must be replaced with a wooden item not UPVC as this would be classed as an improvement.

    A turnover of less than £5000 and the IR will not ask for proof ie receipts.

    You may need to check on the interest only type of mortgage as I dont think all of it is elligible to be offset.
    JB68
     
  7. There are shedloads of things you can off-set against rental income. For the first year it is worth hiring an accountant [his fees are deductable as well]. Then you will know how to do it for future years. I did that and saved myself a packet.

    Fullwit
     
  8. Hey guys how do you go about getting this uniform upkeep thingy??

    Anyone got a number I call or where do I get the form?

    Ta
     
  9. OK, because I'm a boring cnut, I've been doing some more digging, and here we go:

    You can claim £45 for laundry (bonus!), and it looks like you should be able to claim a full amount for expenses (but probably not for clothing, as that is mainly provided by pusser):

    Why you can claim for laundry: ( http://www.hmrc.gov.uk/manuals/eimanual/EIM32485.htm )

    Why you can claim for actual expenses: ( http://www.hmrc.gov.uk/manuals/eimanual/EIM32715.htm )

    Why you (probably) can't claim for clothing: ( http://www.hmrc.gov.uk/manuals/eimanual/EIM32465.htm )
    If anyone can find a link from where I can download ITEPA 2003 (specifically Sections 336 and 367), I'd be most grateful, as I'd rather not go to a load of nugatory work only to be seen off by the revenue. But, similarly, I'd rather not be put to a load of work so they can work out how much tax to make me pay, then pay more than I should.