This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Tax-wise, am I one business or two?

Joined:Tue May 18, 2010 5:04 pm
Tax-wise, am I one business or two?

Postby Windo » Sat Oct 17, 2020 1:39 pm

Hi all,
I have been self-employed in the media for many years. I also own a second home which I want to let out far more than in the past. In order to bring it to rentable condition, I am incurring ongoing maintenance costs, e.g. cleaner, gardener, and have invested in a new kitchen, and bathroom, for example. Friends and family have rented it this summer or a non-commercial basis, paying me a nominal sum. I am keeping separate accounts for the property and have just opened a new bank account dedicated to the property.

What I want to know is whether any of my expenditure on the property can be counted against my media self-employment profits, or whether it is only deductible from the rental income.

For example, I have earned in this year about £500 in rental income, and spent about £2500 on bills, maintenance and improvements. Am I only allowed by HMRC to count the expenses against the rental income, or can it be counted against my general profits as a self-employed media person, out of which I am paying for the maintenance and improvements on the second home?

Thanks in advance.

Joined:Mon Aug 17, 2020 10:54 am

Re: Tax-wise, am I one business or two?

Postby Samson22 » Sat Oct 17, 2020 5:50 pm

No any costs incurred are not offset able against your other endevour. Moreover I think if you let to family they don't allow costs to be offset either (but that might be if it's it's less than market rent). But I'm sure someone could clarify last points.

Joined:Sat Feb 01, 2014 3:26 pm

Re: Tax-wise, am I one business or two?

Postby bd6759 » Sat Oct 17, 2020 5:56 pm

You currently have a trade or profession, and you have a property business. They are different and separate. They cannot be aggregated together: you must keep separate accounts and report the income separately in your tax return using the self employment pages and the property pages.

Return to “Tax Investigations and Enquiries”