On the back of my insurance email yesterday I suppose I should cover off tenancy deposit deductions.
If your tenant moves out and leaves your place in a mess you’ll likely keep some money back to cover the cleaning. Same goes with damages.
Just like insurance claims if you pay the money out to someone else to correct matters then the money held back will be included in your gross receipts and when you pay for the works you will get an allowable expense.
If however you deduct for something that you then carry like cleaning the money held back is taxable but you have no deduction which results in an increase in taxable income. Just like yesterday if you do the works through a company then so long as done at commercial rates you can still have a personal deduction and the company will pay tax on it’s own income.