Query - Advice Please
I have just taken on a new client and am having a TFI Friday moment.
Books and records have been passed to me and going through old accountants info I could do with some advice on the following: -
Client has several properties which are rented out and this is only income.
Old accountant has tax return showing self employment and property section completed.
Cant see why but the Balance Sheet of SE shows the properties as WIP with the cost price and improvements made.
Also on Balance Sheet are the mortgage balances.
There was a very small bit of work done on the side in the pvs year, which will not be repeated.
I thought the best way was to just produce a rental income and expenditure account showing income less repairs, insurance, interest, telephone etc. and that be declaredd on the Tax Return.
I presume that the old accountant has done the P&L and B/S which shows expenses on and a loss each year so that when the property
is sold they offset this against the profit and bring in the WIP as a cost of sale.
I thought you just completed the CGT section when selling a property.
Any pointers or advice on this would be helpful.
I am going home for a bottle of wine now.......hopefully the Friday head ache will have gone by Monday and I can look at this again.
Have a good weekend everyone and cheers
- VAT Invoice 164 5
- Error in past Corporate tax return 368 6
- General tax book with planning 167 2
- Limited Company - Personal Bank Account 3,237 69
- 2013/14 failure to submit end of year submission 292 11
- Gift of property & improvements 125 2
- Company overdue but wants to be struck off 811 32
- IHT and Swiss Property 131 1
- Sale of house with planning permission - tax free? 227 3
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 204 7
- Vat code for journal entries of director's expenses 160 2
- Claiming VAT and missing receipts 466 10
- HMRC overreaching its powers -again against a small surveying firm? 385 8
- Help with tax codes on Sage 264 1
- Letting relief on property transferred to a spouse 194 6
- VAT code for invoice from not VAT registered company 260 4
- Accounting for a finance lease 170 4
- SA302's anyone?? 546 16
- A change from the old Q v NQ debate 1,652 41
- Renting for military reasons 200 2
- Skandia using wrong address 1,621
- Nil Rate Band Trust - index linked debt by way of charge over property 901
- International interest certificate 512
- NOVA 368
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 299
- Management expenses for investment company 264
- Bonus Bonds 262
- tax on apprenticeship income 174
- Entertainer withholding tax in Australia 173
- P11D benefit received by widow 153