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.