Hi,
I’ve recently bought a new house together with my partner (we are not married or in a civil partnership) and I’m now renting out my old house. My partner spent a couple of weeks painting / decorating / cleaning my old house before we rented it out. Can I pay her for this work and offset it against the rental income ?
My rental property is solely in my name and not in a limited company.
In the same vain - As I work full time and she works part time, she also sorted out finding tenants, arranging the deposit, insurance, does inspections and takes care of any issues that come up. Could I also pay here a management fee as a % of the rental income and deduct this from my profit and hence tax bill? If yes,is their any guidance on what is seen as a reasonable / allowable percentage by HMRC? I guess there must or I could just say something like 70% which would be most tax efficient for us?
Obviously she would need to declare this income, but as she only works part time it would largely just fall in her tax free allowance.
Thanks
Joe
Replies (4)
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Just to set some expectations
Thanks for your question Joe. There could well be aspects of your situation that might be of interest to our members and we are happy for you to participate in discussions on AccountingWEB.
Our hope is that you will get some constructive answers, but as you might have anticipated the site is populated in the main by qualified accountants, some of whom may grumble that you're an outsider looking for free advice.
This site is an open forum and there are no requirements for professional qualifications to take part. However I thought it might help to alert you to other members' sensitivities in case you do encounter any negative responses. Please don't be put off by them, and I hope that you are successful in your quest to find a sympathetic accountant.
I suspect PNL is being held hostage somewhere and this is a coded message for help! Somebody call the police