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
- Accountant software 404 11
- Accounting jobs in the UK 138 2
- Foreign income on Self Assesment 229 1
- What aspects of accountancy/book-keeping most trouble people 140 2
- Dividend paid to non-shareholder 197 4
- CIS gross status review 89 1
- Notes needed for a new partner in an LLP 123 2
- Dividend payments to spouses 348 6
- Flat rate vat error 242 5
- Whats the best way to keep my accounts? 134 5
- How do I clear transaction history - Sage 50 v9 143 2
- Whats the best way to keep my accounts? 81 1
- Property versus Trade in a Ltd Company 146 4
- When will Private Principal Residence Relief cut will start? 360 8
- Snotty HMRC letter - continued 619 17
- Dispensation pointless ? 268 4
- Accountant Pays Clients Tax 608 11
- Are bankruptcy restrictions order becoming more common? 202 4
- Charge out rates in London? 216 2
- Negative retained earnings & Dividends 184 3
- Desperately seeking Susan, Sam or anyone with any other name 752
- Experience with Islamic investor following Sharia-compliant rules? 483
- Darwinpay Partnership Assessment 297
- How to format a stock book 264
- S464A Charge to tax: conferring benefit & BIK 211
- Tax efficient holding company structure 201
- Outlook 2007 with business contact manager not loading on new laptop 190
- Investment property company accounts template 190
- auto enrolment - calculation of first pension deduction 168
- Sage 50 Customer Statements and Running Balances 160