Landlord Tax Return

ACG

booksurr wrote: »

I would question your statement "you can also claim for repairing or replacing damaged furniture"

I disagree with the use of the word "also" in respect of claiming for repair/replacement, if you have chosen to use the W&T basis you cannot chop and change so you cannot also claim a replacement cost, whether the item is damaged or not

there is also the small matter that HMRC are trying to change the rules to remove any entitlement to the replacement basis at all. Whilst they have not yet got a statutory basis for this, their assertion that wef April 2013 the renewals basis is no longer valid shows the lie of the land and should not be ignored unless you want to be the test case establishing if they currently have the right to make such a policy change

Im not an accountant, that was put together with help from my accountant but it does also state on there that anyone using it should really speak to one.

Im not doubting what you are saying for one minute, but I would always trust my accountant over the internet.

If/when those HMRC changes come in to effect I can review the document and make some changes

kinger101

ACG wrote: »

I put this together with my accountant for my clients.

http://manchestermortgagebroker.co.uk/data/uploads/tax-document-final-09-2014.pdf - it might be of use?

Just remove the whole sentence "You can also claim for repairing
or replacing damaged furniture". It was misleading advice before the legislation changed. Now it's even worse.

See:-

http://www.taxation.co.uk/taxation/Articles/2014/05/27/325591/making-renewal

kinger101

ACG wrote: »

Im not an accountant, that was put together with help from my accountant but it does also state on there that anyone using it should really speak to one.

Im not doubting what you are saying for one minute, but I would always trust my accountant over the internet.

If/when those HMRC changes come in to effect I can review the document and make some changes

The changes are in effect NOW. Don't give taxation advice if you don't understand the law. The same applies to your accountant.

booksurr

ACG wrote: »

IIm not doubting what you are saying for one minute, but I would always trust my accountant over the internet.

your accountant needs to do some CPD then :
"This election means that instead of claiming relief for replacing utensils, or repairing furniture, the taxpayers deduct an allowance calculated as a percentage of rents received."
http://www.hmrc.gov.uk/manuals/pimmanual/PIM3205.htm

However, as i said, HMRC "guidance" http://www.hmrc.gov.uk/manuals/pimmanual/PIM3230.htm is that renewals basis no longer exists, but the profession considers this assertion unfounded on the basis HMRC do not have the authority to make policy, they can only implement it
http://www.taxation.co.uk/taxation/Articles/2013/10/23/315381/renewals-rails

kinger101

booksurr wrote: »

your accountant needs to do some CPD then :
"This election means that instead of claiming relief for replacing utensils, or repairing furniture, the taxpayers deduct an allowance calculated as a percentage of rents received."
http://www.hmrc.gov.uk/manuals/pimmanual/PIM3205.htm

However, as i said, HMRC "guidance" http://www.hmrc.gov.uk/manuals/pimmanual/PIM3230.htm is that renewals basis no longer exists, but the profession considers this assertion unfounded on the basis HMRC do not have the authority to make policy, they can only implement it
http://www.taxation.co.uk/taxation/Articles/2013/10/23/315381/renewals-rails

I think any challenge to HMRC's interpretation is only going to come from someone with lots of money at stake though (which will most probably be someone letting lots of unfurnished properties). If you're letting furnished, take the 10% and be happy.