How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I own a second property which I rent to my two step-sons.

Resolved Question:

Hi! I own a second property which I rent to my two step-sons. I pay for their utilities (Water, gas, electric) out of their rent. Is this tax deductible, and if using the HMRC online self-assessment service, do I enter the utility amount on their page or pre-deduct it (I hope that makes sense)? Many thanks.
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. Can you tell me why you pay the utility bills please? Whose name are the bills in?
Customer: replied 2 years ago.
I pay the bills because one of my stepsons is autistic and the other is extremely unreliable with money. All the bills are in my name.
Expert:  TonyTax replied 2 years ago.
Thanks.
Leave this with me while I draft my answer.
Expert:  TonyTax replied 2 years ago.
Hi again.
You should disclose the gross rents your sons pay you and claim the utilities costs as deductible expenses in the appropriate boxes in the SA105 rental income pages which you can find here:
https://www.gov.uk/government/publications/self-assessment-uk-property-sa105
You might also be interested in the notes below on losses incurred on properties not let at a commercial rate. These will only be relevant if you have other rental properties.
http://www.hmrc.gov.uk/manuals/pimmanual/pim2220.htm
I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.
That's great. Would utilities costs come under q29 "Other allowable property expenses" ?
Expert:  TonyTax replied 2 years ago.
You could put them there or in the cost of services box.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Many thanks: that's excellent. That's all thanks!