Hi there,
I am going to be taking on two lodgers in my three bedroom flat very soon and am trying to get my head around some tax questions relating to being a resident landlord, so please advice if I have the below correct.
I will be sharing with two other lodgers, who will each have their own room and share the communal bathroom, kitchen and lounge.
The utilities of water, gas and electric will be split roughly 33.3% each, as thus 66.6% of these charges will be tax deductible.
The charges of interest on the mortgage repayments and service charge as the property is a leasehold will be split differently as I will be occupying the smallest room, meaning after working out each individual lodgers square footage, and sharing the communal areas 33.3% each, that 71% of these two charges are tax deductible.
Does this seem a fair and safe way of calculating this?
If so, I have a couple more questions.
Is TV License, Broadband and TV a legitimate tax deductible expense with even though it isn't metered in the same way as utilities?
Assuming both my tenants are liable for council tax, can this be split and deducted in the same way or is it something I should have solely in my name and just increase the rent to cover it?
Thanks,
PS - In this instance, as the flat is in London and the rents are high, the rent a room scheme is not feasible.
I am going to be taking on two lodgers in my three bedroom flat very soon and am trying to get my head around some tax questions relating to being a resident landlord, so please advice if I have the below correct.
I will be sharing with two other lodgers, who will each have their own room and share the communal bathroom, kitchen and lounge.
The utilities of water, gas and electric will be split roughly 33.3% each, as thus 66.6% of these charges will be tax deductible.
The charges of interest on the mortgage repayments and service charge as the property is a leasehold will be split differently as I will be occupying the smallest room, meaning after working out each individual lodgers square footage, and sharing the communal areas 33.3% each, that 71% of these two charges are tax deductible.
Does this seem a fair and safe way of calculating this?
If so, I have a couple more questions.
Is TV License, Broadband and TV a legitimate tax deductible expense with even though it isn't metered in the same way as utilities?
Assuming both my tenants are liable for council tax, can this be split and deducted in the same way or is it something I should have solely in my name and just increase the rent to cover it?
Thanks,
PS - In this instance, as the flat is in London and the rents are high, the rent a room scheme is not feasible.