Reducing rental income tax liability

[Introuble83]

I’m a 50% owner of a rental property . Rent is 900pm . We deduct mortgage interest, insurance, letting agent cost, Prtb costs on our return . Outside of repairs no other expenses are claimed . Are there any obvious expenses that I’m not including that landlords typically offset ? I am considering getting work done on the house before Xmas to reduce next years liability

 

[elcato]

Are you paying life assurance on the mortgage ? Do you make up your capital allowances ?

I am considering getting work done on the house before Xmas to reduce next years liability

If purely to stop paying as much tax then this is a crazy idea.

 

[moneymakeover]

Accountant
Management fees

 

[Introuble83]

Pay management fees And deduct this . Don’t use any accountant . Why is getting work done for tax reasons not sensible ? I can deduct it from the return ? If painting etc is required surely bit makes sense to do it and offset? In terms of capital allowance we have not spent any money on furniture etc in over 10 years so don’t think there is much I can do here

 

[NoRegretsCoyote]

Why is getting work done for tax reasons not sensible ?

Your tax rate is not 100%, so there is still a net cost to getting work done.

Get work done if it is needed and will add value, but don't do stuff that doesn't need doing.

 

[Introuble83]

Your tax rate is not 100%, so there is still a net cost to getting work done.

Get work done if it is needed and will add value, but don't do stuff that doesn't need doing.

Thank you for the reply I was working off this basis

 

[Paul O Mahoney]

You have to pay 90% of your 2020 liability this year, plus the outstanding balance for 2019.
Depending on the type of work you intend doing if its maintenance, painting, plumbing, etc you can off set that against this years, 2020 liability.
You will then fill out your Form 11 next year and pay any difference, if the capital spend you claim 12.5% capital allowances

 

[Paul O Mahoney]

If you have calculated 2020 liability simply deduct the amount of the work you want to do from taxable amount and recalculate 2020 liability and compare, if your top rate tax payer use your marginal rate of tax paye prsi

 

[Thirsty]

Get a good tax agent; their fee is deductable also & I'll bet my lunch money they'll save you at least their own fee in the first year.

 

[aristotle]

Not directly answering your question but you could do a pension AVC (if you have earned income) and that would obviously generate a tax credit. Obviously this has nothing to do with rental income but it seems better to me to pay the AVC, enough to generate a tax credit to cover the tax due on the rental income.