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Should a Landlord do Repair Work Themselves ?

September 10, 2015

This may seem like a great idea - especially if you are good at DIY. Why not repaint that house which is coming empty yourself, calculate the cost of the work you have done, and reduce your profits accordingly.

Unfortunately it doesn't work quite like that. Her Majesty's Revenue and Customs rule that a landlord can't deduct anything for the time they spend themselves working in their own rental business. They can however make a deduction for any materials which they have purchased.
So before you make a commitment to carry out work in your rental houses just think twice as this won't be deductible for tax and perhaps your time would be spent better elsewhere.

All is not lost though. Landlords can pay their spouse or other relations for working in their rental business so long as what they pay represents proper commercial reward for the work done.

Don't forget though that the spouse or relative will be taxable on these earnings if their income is high enough.

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