TAX TIP OF THE WEEK - Alternative tax reductions to mortgage relief

Since mortgage interest relief was restricted a few years ago property landlords have found tax bills have increased. Are there other further hidden deductions they could claim instead?

Perhaps, there are a few areas where expenses are underclaimed or not claimed at all:

💼Legal Costs – your accountant may not claim these as they may be deemed capital in nature. However, as long as they relate to a short lease or tenancy then they can be claimed.

🚗Travel – if you need to travel in relation to managing the property ie as well as the actual property you may need to visit B&Q for materials, the estate agents, the accountant’s office etc. This travel can call be claimed and the easiest way to do so is by way of a mileage allowance.

💻Capital Allowances – You may need to use your laptop and printer to help you send emails, write letters, pay bills, collect rents etc. You can therefore claim allowances against the purchase costs of such equipment.

🏠Use of Home – to manage the property you may need to work a few hours a week from your home. Therefore you can claim for use of home by either a proportion of costs method of by HMRC flat rate deductions.

So although HMRC are making it tougher for property landlords, you can re-address the balance a bit by making sure you are claiming for everything you can. 🚀

I hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist.