Help with tax return/receipts etc ?

stylus360

Hi All

I have two rental properties and need to get my tx form done for 2010/2011. I intend on going to my local accountant soon.

I have spent a fair bit on both properties as they both needed building work etc and have kept all receipts in expanding folders sorted monthly.

These inc diesel etc for my van which i also use for them (have car as well)

I intend to get my accountant to fill my tax return form in.

My question is do i just take along all my receipts and pay him to sort them ?

Or do i just sit down for couple of hours and collate all the outgoings myself somehow ??

How would this be done as i have LOADS of them....

Could i not number each receipts in the respective monthly folder and write them in some sort accounts book ?

Anyone help me out here ??

Thanks

heretolearn_2

You have to ask your accountant what he/she wants you to do.

We charge according to the amount of work to be done, so with us, yes, clients reduce their bills if they sort their paperwork out and give us the figures for their various outgoings/incomings, instead of just presenting us with a carrier bag full of stuff.

But we can't say how your accountant works, or how they would prefer you to present the information to them.

Pennywise

It's pointless to waste your time logging the payments onto a system or spreadsheet until you've spoken to your accountant to ask him what he wants you to include and what analysis columns etc he wants it all sorted into.

For example, there's no point logging all the diesel receipts unless you're claiming the full costs of the vehicle, including purchase, insurance, road tax, repairs, etc., and then apportioning between business and private. It may be better to just claim a mileage allowance for the miles driven. Diesel receipts on their own, without other vehicle costs, and without a mileage log, is useless.

With your building repairs, you need to split between normal repairs/replacements and capital improvements - you won't know how to split this until you get an accountant to explain the difference.

So, go see the accountant first - by all means take your papers with you, but the aim should be to find out how they want you to present the information. You should get quotes showing the difference between you doing the analysis etc yourself as opposed to them sorting through your papers.

stylus360

Well just spoke to my accountant and he said it will be £40 for him to do it online by Jan. As long as everthing is in monthly folders he said he would total it all up at no charge, informed him i ca do it etc and he said no bother it's £40.

Meeting him next week just to drop off receipts and have chat about my mortages/van/milage/tools/other expenses. etc

chrismac1

Hard to believe that price includes sorting out the rental aspects for 2 separate properties, which usually involves a bit of work especially where large repairs are in the mix. Is this guy qualified? If so, have you got a letter of engagement which includes the rentals? If so, bite the hand off if it is a fixed price quote!

System

stylus360 wrote: »

Well just spoke to my accountant and he said it will be £40 for him to do it online by Jan. As long as everthing is in monthly folders he said he would total it all up at no charge, informed him i ca do it etc and he said no bother it's £40.

Meeting him next week just to drop off receipts and have chat about my mortages/van/milage/tools/other expenses. etc

Far be it for me to agree with chrismac1 but £40 seems very cheap for a good accountant especially considering the range of expenses you've incurred.

Regshoe

Pam17 wrote: »

Far be it for me to agree with chrismac1 but £40 seems very cheap for a good accountant especially considering the range of expenses you've incurred.

Sounds pretty cheap even for a bad accountant to me!

heretolearn_2

I'm not being funny but that price should ring some alarm bells.

There's no point saving £100 on an accountant's fee if you end up paying £500 extra tax because someone doesn't really know what they are doing.

Even unqualified people normally charge at least £100 for a tax return. That would be blooming cheap for a 2 property landlord.

Is this someone who is going to be able to give you any advice/do some tax planning for you/make sure you only pay minimum tax due by claiming all allowances etc? Or is it some chancer who'll just bung a load of numbers in boxes on a form in 10 minutes flat and get you to sign it?

chrismac1

Here are the steps a qualified accountant takes with every new client, regardless whether it's £40 fee or £4,000:

1. Ask for all tax references, dates of birth, address and so on.
2. Issue a letter of engagement, potentially with appendices spelling out each party'e legal responsibilities to one another.
3. Write to any previous accountant for clearance to take on the client.
4. Ask for bill at address quoted, plus photo ID - and perform an anti-moneylaundering review.
5. I also perform Companies House search, internet search, and solvency check especially of larger clients.

If steps 1 to 4 are not being performed, this is a cause for concern.