Jump to content

Tax deductable


Grampa

Recommended Posts

Now I am the first to admit I know very little about tax and accounting but I am always on the look out if there is a saving to be made on your tax bill.

I am sure I read somewhere (i thought it was this site) that as a landlord you could account for a xmas party/board meeting up to the value of either 100 or 200 quid each year. But when mentioned to my accountant he laughed.

Am I mad or did I read it on this site?

 

 

Link to comment
Share on other sites

I've never heard of it and don't know anyone who has done it.

I give my agents a nice gift (a few bottles) every Christmas but have never tried to offset it against tax.

Perhaps it you are a limited company the rules are different......you could try running a quick search on the HMRC website. They have lots of good guides.

Link to comment
Share on other sites

Just done an hmrc search on your behalf.

The short answer is yes....x1 annual event e.g. Xmas party or summer bbq......for employees, accompanying guests etc..... up to £150 per head max. Includes everything food drink venue entertainment transport etc etc.

Can I get an invite to next years ??

Link to comment
Share on other sites

The sherry and Dandelion and burdock punch are on order and you all are invited.

After I posted and doing a bit a trawling of the web I did find the info about the £150 allowance for a annual dinner but for some reason I got it confused with a  XMAS party.Must be my age.

But I did come across a couple of other allowances you may or may not be aware of which were:

1.         If you are a leaseholder, you will usually pay ground rent to the freeholder. Service charges are common in blocks of flats and can vary greatly. Basic charges cover cleaning, maintenance, heating and lighting for common areas, but other costs could include security or concierge staff. You can also claim back any on-site services such as gardening and electrical costs.

2.·         Home as office costs :These can vary depending on the size of a landlord’s property business. Every landlord can claim either a flat rate or calculate an amount based on time and space used for business at home. Either claim a flat rate of £18 a month or claim up to £26 a month based on simplified accounting rules or more by collecting bills and working through the claim

3.·         Paying a spouse or partner:  If you are part of a group of friends or family owning letting property, you cannot claim compensation for spending your own time on business tasks but you can pay a non-owner for doing the work for you. The proviso is the amount paid reflects the work they carry out. The payment then goes into the accounts as a business expense to reduce taxable profits. This tax strategy is also a good way of transferring the burden of pocket money for teenagers to your property business. Keep the amount below the national insurance threshold and it’s a win/win for the business and the worker

Link to comment
Share on other sites

That's useful info thanks.

No. 3.......readers should bear in mind that if the payment goes to an adult instead of a child/ teenager then it follows that the recipient should declare it as income and pay tax on it.

Unfortunately for me i have no teenagers who can do for me, perhaps I could borrow someone elses. My past experience is that teenagers have issues with arriving on time, working hard, diligence, obeying instructions, not leaving early, completing the task and arguing. Apart from that they are almost perfect for the job.?

Link to comment
Share on other sites

10 hours ago, Richlist said:

 

 My past experience is that teenagers have issues with arriving on time, working hard, diligence, obeying instructions, not leaving early, completing the task and arguing. Apart from that they are almost perfect for the job.?

Sounds very much like the teenagers in my household. 

Link to comment
Share on other sites

.·         Home as office costs :These can vary depending on the size of a landlord’s property business. Every landlord can claim either a flat rate or calculate an amount based on time and space used for business at home. Either claim a flat rate of £18 a month or claim up to £26 a month based on simplified accounting rules or more by collecting bills and working through the claim

 

We (my wife as the property is in her name ) is using the garage of our holiday let as an office /store , behind the garage is what used to be the utility which is now redundant (as we have moved the 4 oven Aga out of the kitchen and had it installed in our own residence) and put the machines in its place . We have been told by our accountant you have to have a wc fitted  to claim for an office ,so the ex-utility is now a toilet /washroom. Edit to add ,I can see in her mind an AirB&B coming as we had an insulated ceiling with downlighters fitted in the garage part.

Link to comment
Share on other sites

There are numerous ways of legitimately calculating how much to claim for a home office.

We add the total cost of running the house.....mort, gas, electric, water, council tax, insurance, repairs, maintenance, absolutely everything associated with running the property etc etc and divide by the total number of rooms which could be used as an office, in our case 8. Then we apply a split between private and business use.

We find this method produces the most cost effective result for our situation compared to all other methods.

There would be little point in just picking one type of method without knowing how it compares to other ways of doing it.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...