Could I put our property as a loss?

**claire250182** · 09-04-2012, 10:13 AM

We live in Birmingham but we have an apartment in Manchester which we rent out. The incoming rent covers the mortgage but we have to pay £90.00 per month management fees plus £200 a year ground rent so we are making a loss with these fees. Is there anything we could do to put this through the books or is it too complicated? Thanks

**Bridey** · 09-04-2012, 10:28 AM

I think this has to be dealt with separately from your childminding accounts! It has nothing to do with childminding.

My mum has a house she rents and she has to keep records of all income and expenditure and fill it in on a tax return every year. It doesn't come under her work income and expenditure - there is a separate section for it. I'm assuming you are already declaring all this to the tax man?

**claire250182** · 09-04-2012, 10:53 AM

I have only been registered since November and my first children start next week so I have not done any books yet as I have had no income. I am meeting with an accountant next week and I did ask him about this and he said that we would be able to put it through as a loss but it sounded complicated. I just wondered if anybody here had a similar situation.

**MrAnchovy** · 09-04-2012, 12:31 PM

You cannot set off losses from rental properties (except furnished holiday lettings in some circumstances) against your childminding profits.

**claire250182** · 09-04-2012, 03:43 PM

Many thanks. Our property is fully furnished and my accountant said I would be able to in some way. Is this not the case then?

BucksCM · 09-04-2012, 03:50 PM

Do you use it for your childminding business??

**Bridey** · 09-04-2012, 05:12 PM

I think your accountant was assuming you are already declaring the income you generate from the rental you receive. Aren't you legally required to do so?

**claire250182** · 09-04-2012, 05:34 PM

No Debbie, we just rent it out. Bridey, I haven't so much as started my tax yet so I have no idea really. The rent we receive goes back out to pay the mortgage so we are not receiving the rent as income if that makes sense (we are not making any profit). Not sure if that matters?

**Bridey** · 09-04-2012, 06:43 PM

Yes it does, you still need to declare it or you are breaking the law. It is still income (rental property income, not work income) even if you are not making a profit. If you are making a loss then you won't have tax to pay on it but it does need to be declared. I think seeing an accountant is a good move and I'm sure they will explain it all and help you with what you need to do.

**Chatterbox Childcare** · 09-04-2012, 09:48 PM

You need 1 set of accounts for your rentals and another for your childminding. Declare both and the self assessment will sort it out..

**PixiePetal** · 09-04-2012, 11:28 PM

we rent out our old house - it makes a profit and this goes on my tax return as income from property or something like that? (well half of it, as husband is included on the house rental income too so he declares the other half)

my CM income is the main bit so any profit from that and profit from house are added together as income for my tax.

The rent from your house let - minus expenses (fees, upkeep/decorating,any electrical work etc) is your profit. My DHs accountant works it out for him and I put his figure in my tax return

an accountant should know what you can claim for. Keep any receipts for work on the house and things you buy - we put in a new kitchen sink last year, had to have an electrician check lighting after a leak, also builder to sort gutter which caused the leak!

Luckily our mortgage is low (and finishes in 6 years

) so we have profit from the let

**kellym3** · 11-04-2012, 08:47 PM

just read through thread as was going to ask similer question thanks for that. Though im still not 100% do i have to ring tax office (to tell them of my let property) or just fill out my self assessment ?

**MrAnchovy** · 11-04-2012, 09:58 PM

Just complete the appropriate section of the self assessment.

**clairelou** · 12-04-2012, 05:25 PM

Originally Posted by MrAnchovy

You cannot set off losses from rental properties (except furnished holiday lettings in some circumstances) against your childminding profits.

I thought the government had stopped this now.....we have a holiday cottage and as its new to us we have made a loss in the last tax year, I understood this could not be offset against other income any more....just any future profits from that business?
However as others have said the two businesses and any wages from a job need to be separated completely on the tax return.