Get proper landlords insurance, normal insurance is no good and they will not pay out once they find out it is a let property.
gas and electric have to be tested yearly.
you need to decide if your going to claim for petrol and car expenses or by the mile, off the top of my head it's 40p a mile. I claim mileage because I work in London and do 60 odd miles a day round trip for my work and I claim 6 miles a week round trip to visit my tenants (havn't seen them in ages though
).
£20 a week for an office in my house.
bought a laptop claim 33% 1st year, 33% 2nd year, 33% 3rd year, 33% 4th year then buy a new on 5th year so claim tax on 132% of the original cost.
Got married last year so will be using Goldie's tax allowance next year as will pay her to do all the paperwork.
I also run a hmo for my father who has several propertys and claim the mileage every week to collect the rents for him.
A chartered accountant is good because they will stay within the law and you won't get hassle later off the tax, I get mine cheap because he does all my fathers stuff for him.
I have attached a sample letting agreement, Just delete/change the bit's not applicable.
Councils are getting really hot now so if your going to do this in a slap happy way then don't bother because they will be over you like a rash.
When I took over my fathers hmo had to rewire the house, fit a new kitchen and redecorate from top to bottom.
They have served him with notice to do up one of his other houses and they want a much higher standard than they supply themselves as council housing. At this house my father charges £550 a month when the going rate is £750 pcm so he is going to do the house up then get rid of the tenants in August when the ast runs out and let it for £700pcm to new tenants. My father has no mortgages and the houses are his pension fund so he could afford to let cheap but now he is having to dip into his own pocket he will be charging nearer market value to recoup his losses.
He is planning on doing a few of his other ones up as well and raising all his prices to nearer market value.
When you let the house to friend or strangers always plan for the worst when they go or you may get a few expensive shocks.
If you get a decent (chartered accountant) and claim for everything then your tax bill should be negligable anyway without the need for lying and scheming. The only people that get screwed by the tax are people on paye and numptys that try to be clever and outfox themselves.