So the filing deadline for self assessment tax returns has passed and accountants all over the land are recovering from the last minute rush. There is no doubt that January and the couple of months leading up to the deadline are the most stressful for tax payers and accountants alike. It is however not as stressful as having the HMRC enquire into your tax return. If you want to know why we hit our deadlines and get some top tips on how to avoid the stress of an enquiry then please read on…..
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Park Lane Accountants Chippenham offer practical advice regarding property taxes that will stand you in good stead and ensure that comply with your obligations. In this short blog we look at record keeping for property but the general advice applies to all aspects of running a business.
All UK- resident landlords are generally taxed on profits made wherever the properties are situated in the world. A record of income, expenses incurred and capital items purchased must be kept. Separate sets of records must be kept for “furnished holiday lettings” as these are taxed under different rules.
You need to keep the following:- Invoices, expense receipts, capital item receipts and rental statements. You also need to have past years income and expenditure accounts and your past years tax returns along with any bank statements. In order to plan for tax properly you should have a record of the purchase price of the property, the date it was purchased and any associated purchasing costs. If as the landlord you have ever lived in the property or if it has been your main residence in the past then details of the dates etc should be kept to ensure that all of the relief available is claimed on sale.
If you do not keep adequate records then even if you have incurred expenses they may not be allowed. You could also face a penalty of up to £3000 for failure to maintain adequate records for self assessment purposes.
Park Lane Accountants Chippenham would be happy to help you prepare your self assessment tax returns and rental accounts.
It looks like HMRC are at it again !
We are aware that a number of letters have been received by tax payers in relation to High Income Child Benefit Charge. If you are not aware, this was the coalitions policy of reducing or removing child benefit for those families where one of the parents earn over £50k per year. The charge starts at £50k and removes 1% the child benefit payable for each £100 of additional income and so removes 100% at an income of £60k.
Property has long been considered a good investment in the long term and we are going to pass on some property tax secrets to you. Over the next few weeks we will write about property, the do’s and don’ts and how to ensure that you are aware of the many pitfalls.
Our first blog looks at the different ways of owning property.
We are really pleased to have identified a suitable office in Chippenham for our business as it continues to grow and we are really pleased to have moved in over the weekend. As any of you who have moved your business in the past will know, it is not something you do without careful consideration as its really hard work!
We are holding on to the fact that our reasons for moving are very positive and that more clients is a good thing and that we should be grateful. The message and our reputation seems to be gathering momentum and we are very positive about the future for both us and our clients.
As always the legal stuff seems to have delayed the move then it all happens quickly… Telephones are now in place and I am trying to get the website updated as soon as possible.
In the meantime the contact details are as follows
Park Lane Accountants
6 Prince Maurice House
Capital Gains Tax (CGT) from April 2015 will apply to foreign investors if they sell any home in th UK that is not their main home. The CGT threshold will rise from £10900 per annum to £11100 per annum by 2016. As of this April the exemption period for CGT will be cut to 18 months from 36 months. There will also be a restriction on owners being able to avoid paying CGT when selling their main home, even if they stopped living in it up to 3 years ago.
Its been almost a week since The Chancellor George Osborne delivered his latest budget to Parliament. The dust has now settled and we have received the highlights, headlines and analysis and now its time to consider what the actual impact is likely to be on our clients. As Accountants for Bath and Wiltshire based businesses here is our practical view on the budget and how it may affect you.
The 2013-14 tax year ends on 5th April 2014. You have until this time to pay into an ISA, a tax free savings “wrapper” where all interest or earnings are paid tax free.
There are 2 kinds of ISA
1. Cash ISA which has a limit of £5760 for the 2014 tax year.
2. Stocks and shares ISA with a limit of £11520 for the 2014 tax year.
One of the most common topics discussed with clients is that of structuring property ownership and the taxation of rental income.
Where a property is rented out, any income (less deductible expenses) is subject to taxation. The beneficial owner(s) is liable for Income tax and not the legal owner although often they are the same.
OK here is some advice that will save you £’s – Seriously, you will thank me if you follow this advice.
1. Borrow money to buy things that go UP in value.
Your business, your house and your education. If you are cleverer than me perhaps the stock market.
Thats it – Its simple – you are done. If I could give you one piece of advice its this ……..