Tax dodge of the week: Landlords should claim back expenses
Landlords could be missing out on hundreds of pounds a month because many are failing to claim for all of the property-related expenses they can offset against their annual tax bill.
New and inexperienced landlords could be missing out on hundreds of pounds a month at a time when the weak property market means they need all the money they can get, according to specialist buy-to-let lender, Paragon. That's because many are failing to claim for all of the property-related expenses they can offset against their annual tax bill.
Rent from buy-to-let property is subject to UK income tax and should be declared on a Letting Income Schedule. However, landlords can also use the same schedule to claim back costs "wholly and exclusively" incurred in generating that income.
The latest example to join a growing list is an energy-saving allowance of up to £1,500 when energy-efficiency work, including insulation improvement, is carried out. Paragon's latest survey revealed that 86% of landlords were unaware this existed.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Other big tax deductible expenses include mortgage costs, water rates, buildings insurance, "like for like" repairs and maintenance, wear and tear for furnished properties of up to 10% of rental income and advertising costs for new tenants. For more, see Paragon Mortgages Buy-to-Let Tax Guide.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Could investing in sugar protect you during a downturn?
Sugar has some defensive qualities during economic downturns, but is now the right time to invest in sugar?
By Dan McEvoy
-
Trump’s tariffs: how should the UK respond?
Every right-thinking person knows that free trade is a surer route to the wealth of nations than protectionism. So, what is Trump thinking?
By Stuart Watkins