Self Assessment for Buy To Let - Can I do it myself?

kopper

Hi

I have a flat which I have been renting out for the past 3 years and have been using an accountant to submit my Self Assessment forms.

As the Flat is in mine and wife's joint names the accountant charges £160 per form so we end up paying £320+vat a year.

I'm in full time employment and is a higher band tax payer where as my wife works part time and pay no tax.
We have no other earnings apart from this rental income.

The question is, how difficult is it to complete and submit a Self Assessment form for each of us and not use an accountant?
Can anyone recommend any links for a step by step guide?

tebthereb

Setting up an online account is pretty easy and you can google your way to it easily enough. Submitting the returns will also be fairly straightforward. The HMRC online software prompts you and the questions are generally self explanatory.

£320 plus VAT for two returns doesn’t seem bad to me but then I work for a largish firm. You are paying to minimise risk of errors really - as you are putting the return into the hands of someone experienced and with procedures in place - and of course to save yourself time (which you may consider worth far more than £320 plus VAT.

Of course with your wife paying no tax and you paying higher rate tax it seems there may be scope for some simple planning that could be undertaken here to mitigate tax. Talk to your accountant about that.

pramsay13

It's very easy to do.
The property income section is just an extra page and only a few of the questions will be relevant.
The HMRC website itself is quite helpful and at each question there is a help box to guide you.

Pennywise

Putting numbers in boxes is easy. Knowing what goes into each box is a lot more difficult. In particular, there have been big changes over the last few years as to what is allowable in respect of purchase and replacement of fixtures and fittings. The old "10% wear and tear" is gone. The "replacements" basis has changed. There are also transitional changes re financing costs which now need to be split into different boxes. You can't just "copy" how it was last year anymore. Yes, it's all in the guidance notes and HMRC manuals, so nothing hidden, but you do have to spend time to think and check the impact of these recent changes.

Kynthia

Loads of people do this themselves.you have to make the time to understand the rules though, particular if things change, keep proper records, and don't leave it until the last minute.

Sibbers123

Just make sure to stay up to date with the changes to tax legislation.

There used to be two finance acts every year, but now there is only one, so only about 400 pages of new legislation each year...

Recently, the government has had it in for landlords so there are some significant tax changes coming in, especially about tax relief for mortgage interest.

In my opinion, if you can afford it, use an accountant for the piece of mind. If you get things wrong/late, penalties alone can be thousands. If you can't afford it, set aside a weekend to get them all submitted.

00ec25

"all" you need do is register with the HMRC online training courses and make sure you do them along with the updates they (very) frequently send out

Dear customer,
HMRC has a range of online guidance designed to support you when reporting your property income, whether you’re a new landlord or just needing a refresher.
Our YouTube channel has a range of videos including, ‘Your income from property tax return’ or watch our new YouTube webinar series to find out about:
• Part 1 – Property income receipts
• Part 2 – Property income expenses
• Part 3 – Finance costs for residential properties
• Part 4 – Property income profits/losses.


In our online guide, 'Letting out property', you’ll find lots of useful information and it’s available at a time and pace to suit you. A handy tool you can return to, whenever you need to.


or just pay your accountant his modest fee to remove all the stress from you and your wife

kopper

tebthereb wrote: »

Setting up an online account is pretty easy and you can google your way to it easily enough. Submitting the returns will also be fairly straightforward. The HMRC online software prompts you and the questions are generally self explanatory.

£320 plus VAT for two returns doesn’t seem bad to me but then I work for a largish firm. You are paying to minimise risk of errors really - as you are putting the return into the hands of someone experienced and with procedures in place - and of course to save yourself time (which you may consider worth far more than £320 plus VAT.

Of course with your wife paying no tax and you paying higher rate tax it seems there may be scope for some simple planning that could be undertaken here to mitigate tax. Talk to your accountant about that.

If we have already been using UTR numbers through the accountant, do we need a new online account fpr applying without an accountant?

Thanks

kopper

00ec25 wrote: »

"all" you need do is register with the HMRC online training courses and make sure you do them along with the updates they (very) frequently send out

Dear customer,
HMRC has a range of online guidance designed to support you when reporting your property income, whether you’re a new landlord or just needing a refresher.
Our YouTube channel has a range of videos including, ‘Your income from property tax return’ or watch our new YouTube webinar series to find out about:
• Part 1 – Property income receipts
• Part 2 – Property income expenses
• Part 3 – Finance costs for residential properties
• Part 4 – Property income profits/losses.


In our online guide, 'Letting out property', you’ll find lots of useful information and it’s available at a time and pace to suit you. A handy tool you can return to, whenever you need to.


or just pay your accountant his modest fee to remove all the stress from you and your wife

Thats great !
Thanks a lot

00ec25

kopper wrote: »

If we have already been using UTR numbers through the accountant, do we need a new online account fpr applying without an accountant?

Thanks

the clue is in the name UNIQUE TAXPAYER REFERENCE number
you are the taxpayer, your number is unique to you. I'm sure you can work the rest out yourself.