Landlords tax return book

armour

Hi all, I've been using an accountant up till now, but I reckon I'll do my own tax return from now on. Can anyone reccomend a good book on the subject?

ognum

I use an account, remember it is tax deductible so why do it!

armour

I was charged around £600 last time. It's still an lot even if it is tax deductable.

Lovelyjoolz

Unless your profits are huge, I don't see the point in paying an accountant to do your Self Assessment form. Even if it is tax deductible.

Seriously, have a go yourself. It's a two-page online form that you could complete in under 20 minutes. It's a doddle. HMRC's website has all the info you need to complete the actual form - it is very straightforward, so you don't need a book to help you with the actual completing of it.

However, if you want a book that can help you be as tax-efficient as possible, this book might be of use:
http://www.taxcafe.co.uk/small-business-tax-tactics.html
There's a lot of filler in the content, but there is some good advice.

Have a look in your local library for tax-saving guides too. Very MSE

Good luck!

poppysarah

armour wrote: »

I was charged around £600 last time. It's still an lot even if it is tax deductable.

Is that for a limited company with VAT for a year?

Lovelyjoolz

poppysarah wrote: »

Is that for a limited company with VAT for a year?

Ah. Good point poppysarah - I was assuming the OP is a sole trader.

armour

Thanks for the replies.
No, no limited co. complications. I have a 9-5 job but let out 3 properties (was 2 until last tax year). I seem to remember the accountant's charges as £250 per property with some kind of discount for multi properties.
My problem is that I'm not a very organised person. Having said that I still have to collate receipts, statements etc so I dont think the actual filling in of the form would be that difficult.
The accountant does organise that I pay tax due on the rental income a year in arrears and that it's paid by reducing my tax allowance to almost zero. This is the kind of thing I want to "bone up" on.

Lovelyjoolz

armour wrote: »

Thanks for the replies.
No, no limited co. complications. I have a 9-5 job but let out 3 properties (was 2 until last tax year). I seem to remember the accountant's charges as £250 per property with some kind of discount for multi properties.
My problem is that I'm not a very organised person. Having said that I still have to collate receipts, statements etc so I dont think the actual filling in of the form would be that difficult.
The accountant does organise that I pay tax due on the rental income a year in arrears and that it's paid by reducing my tax allowance to almost zero. This is the kind of thing I want to "bone up" on.

OK, so if your accountant has told you that he has 'arranged' for you to pay your tax in arrears then he has mislead you. income tax on self-employed income is always paid in arrears. For example, for the current year ending 5th April, you will not be required to file your SA tax return until January 2013, at which point you pay the income tax due, less any interim payment you may have made in the July. This is standard practice for everyone and is explained clearly on HMRC website.

Reducing the tax code as a way of paying the tax is, again, very common and also explained on HMRC's website. It doesn't sound to me like your accountant was breaking any ground here, merely following standard HMRC advice. Was that worth £600 to you?

I suggest that to start off, read everything on HMRC's website about being self-employed. This will give you an idea of what you HAVE to do. You will then know enough to formulate your own questions and you can then go seeking the answers.

If you continue to keep your receipts and statements, you'll find the process simple. I have a very simple spreadsheet for tracking income and expenses specifically designed for landlords. If you PM me your email address, I'll forward you a copy.

Can I ask one question, that any accountant worth their salt should have asked you: Do you have a pension?

armour

Very informative LJ.
I ought to mention that I went to this accountant about 4 yrs ago when HMRC sent me a letter inviting me to come clean about some rental income I may be getting. He sorted the whole thing out for me & I've used him ever since.
No, he's never asked about pension provision. This is something that concerns me, as I think I'm due to go over the 40% tax barrier in this financial year.
I do have a "deferred" FS pension due to pay around £700/month at age 63, an active DC pension (I pay 7%, company pay 7%) worth £25K and a"contracted out/SERPS/S2P" pension pot of £13K.
If I am going to be over the 40% barrier, I guess I should pay the excess Into one of these pensions.
Thanks for the offer of the spreadsheet, I'll PM you now.

pennydrain

"If you continue to keep your receipts and statements, you'll find the process simple. I have a very simple spreadsheet for tracking income and expenses specifically designed for landlords. If you PM me your email address, I'll forward you a copy"

LJ, would you mind if I pm'd you for a copy as well? I'm in a similar position to the op and will hopefully be doing my own tax returns.

Andrea75

Lovelyjoolz wrote: »

OK, so if your accountant has told you that he has 'arranged' for you to pay your tax in arrears then he has mislead you. income tax on self-employed income is always paid in arrears. For example, for the current year ending 5th April, you will not be required to file your SA tax return until January 2013, at which point you pay the income tax due, less any interim payment you may have made in the July. This is standard practice for everyone and is explained clearly on HMRC website.

Reducing the tax code as a way of paying the tax is, again, very common and also explained on HMRC's website. It doesn't sound to me like your accountant was breaking any ground here, merely following standard HMRC advice. Was that worth £600 to you?

I suggest that to start off, read everything on HMRC's website about being self-employed. This will give you an idea of what you HAVE to do. You will then know enough to formulate your own questions and you can then go seeking the answers.

If you continue to keep your receipts and statements, you'll find the process simple. I have a very simple spreadsheet for tracking income and expenses specifically designed for landlords. If you PM me your email address, I'll forward you a copy.

Can I ask one question, that any accountant worth their salt should have asked you: Do you have a pension?

Hi LJ,

I've just come across your advice ref online filing and you sound like a pro. May I be bold and ask if you would mind if I PM'd you for a copy of your simple spreadsheet as well? I'll be attempting to filing my very first tax return by end Oct 11. Thank you!