Tax expenses for airbnb/b&b landloards

[rafa]

I am just doing my first tax returns incl. rental income.I rent out a top floor in my own house, wh effectively functions as an apartment, to international guests on airbnb - at least 50 stays a year. I also have a separate lodger in a downstairs room.

I'd like to know what is allowable for what I guess is a form of b&B, (though no breakfast):

such as purchases of

*bedding
*furniture - new mattresses etc
*plates
*bulbs etc
*towels

*new carpeting

*Tv's

I spent a lot on stuff for what is effectively an apartment for travellers - stuff intended expressly for guests - although I guess you could argue about whether a new mattress/tv is allowable or not.

Also I had a lot of

*maintenance repairs - to the boiler and electrics - are these allowable?

And I'd like to know what percentage of water/gas-electric/broadband/ and esp. council tax to allot. I figure that 50% is v. reasonable - because I live alone in the house, and there may be up to 5 guests at a time, though with some empty periods.

But is 50% a reasonable figure for *council tax* especially? Or should it be lower? My council tax is £2200 total - so this is a potentially large exense to deduct.

And presumably I can deduct 10% wear & tear, after first deducting all my expenses?

Many thx for any help on these matters - just joined this forum & it looks v. helpful.

[Richlist]

Your situation is unusual and unless someone comes along here with a definitive answer I'd suggest you need to see an accountant.....at least for the first year. Let him/her do the accounts and claim allowances using the most appropriate method.

[Dave A]

We ran a B and B in the Norfolk Broads for ten years, currently up for sale if anyone wants one. Anyway we have used an accountant for all that time, they have always saved far more than they have charged.

All of these:

*bedding
*furniture - new mattresses etc
*plates
*bulbs etc
*towels

*new carpeting

*Tv's

We would have claimed for if used in the guest rooms or shared areas.

Boiler and electric costs are apportioned, i.e. a calcualtion is done and a percentage is claimed against your liability. Our accountant worked this out for us. Like RL has said, if you get an accountant to do it the first year, you will know what this should be follwoing years.

The same with "water/gas-electric/broadband/ and esp. council tax", however with council tax we did and still do pay council tax as well as business rates, so I would look into this one carefully before proceding. You could end up paying more than you currently do, I would talk to other B and B owners in your local authority area. You should also be able to apply for a hotel tv licence which is an allowable deduction.

Don't forget any computer equipment you use for your business which is currently 100% deductable, any food you supply and any parts of your house that you use for business pruposes. There are many more, again an accountant will most likely pay for themselves in the first year.

Not sure you could apply the 10%, an accountant would be the best bet here.

Dave

[rafa]

Thx guys - esp. Dave A. Useful to have your caution re council tax.

Unfortunately too late to use accountant, but maybe next year.

I was going originally just to claim £4250 rent a room relief, but the self assessment system didn't allow it, and the HMRC guy on the phone said it wasn't admissible - wh. stands in contradiction to every advice manual, like Which.

I figured - correctly - that even if I could (and probably will) claim expenses of c £6000, I would save myself a lot of time compiling them and researching them, as I'm doing here.

Oh well, thx again. Further advice from anyone else still welcome.

[Richlist]

In which case it looks like you have 9 days to get your tax return to HMRC or face a minimum £100 penalty.

Leaving it late is never a good idea.....especially if you don't quite know what you are doing.