Allowable Costs For Property Investors

Chris Street

21st November 2013

Posted by Simon Misiewicz on 21st November 2013

Set up and administration of a limited company for property investors

Keeping expenditure receipts

It is imperative that you keep all receipts.  These ought to be recorded  on a spreadsheet or accounting software, whilst making sure that you check that the bank balances in your spreadsheet / accounting system agrees at all times.

There will be times when you need to use cash to buy goods and services but these ought to be kept to a minimum to make it easier for you to account for the costs.

The following types of costs may be accounted for to help you reduce your tax. This list is not complete but it gives you an idea of what costs may be accounted for in your limited company (1):

  • Repairs: exterior and interior painting, damp treatment, stone cleaning, roof repairs, furniture repairs
  • Rents and leases
  • Business Rates
  • Council tax
  • Water Rates
  • Ground Rents
  • Insurance
  • Maintenance: cleaning, gardening
  • Loan interest and finance charges
  • Legal and professional costs
  • Utilities (if the tenants are not paying for them)
  • Stationery
  • Phone
  • Travel: To the house and associated companies managing the property
    • Car journeys
    • Train journeys
    • Flights
    • Hotels
    • Subsistence (whilst away on business)
  • Environment energy saving technologies
  • Membership and subscriptions (Property related or management related)
  • Education for employees

Claiming mileage

You may wish to offset the cost of your vehicle by processing the invoices for the car:

  • Purchase (Capital allowances over a period of time)
  • Lease / hire of a vehicle
  • Fuel
  • Repairs and maintenance

Alternatively you can claim a mileage allowance. I shall not go into details here because I have already written an article on this matter (2).

Allowable Property Expenses
Is It Better To Buy A Car Or Claim Mileage?

Next steps to set up the right structure for your property investments

If you want to understand how to implement this strategy or to discuss other finance/tax questions then please book some time with us using the below calendar:

If you are looking for a new accountant then please book some time with us using the below calendar. Please note that this booking is to describe our services and will not be used to discuss your personal tax affairs.

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