New landlord wants a quote for his and wife tax return. The property is jointly owned, Both work and have no other income
They also want advice how to reduce taxes on property. One is a lower tax payer and the other higher tax payer
Later they require to change the beneficial interest which would involve declaration of interest and form 17.
Is £250 for each tax return the normal price for property tax return though I envisage it will take a couple of hours to complete.
Secondly the main question is how much to charge for the change of beneficial interest ?
Thx
Replies (19)
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It would depend on records kept. Do they use an agent? Do they record expenses properly or not?
If everything in good order, I'd charge around 375-450 all in and usually nearer to the 375 I'm in Mancheser I add. Will be higher darn sarth.
seems high
They have the income and costs in a spreadsheet
£375 per tax return seems high when the second tax return will not take too long to do
I think you are in the right ball park. I wouldn't make a special charge for the form 17. I'd throw it in.
Just to avoid confusion, when I said is charge 375-450 I meant for the two tax returns, not each
Where are you?
I am just outside M25 and my fees for personal tax returns start at £250. You still have to do AML/KYC checks and make sure you have all supporting documents and it is still 2 tax returns.
I do not believe you can elect to change the beneficial interest for a married couple. Income is split in the same share as the ownership. You can, however, change the ownership.
It would depend on the standard of the paperwork.
For purely the compliance work (and if done solely via email), the fee would be about £75 each.
Seriously!
It would depend on the standard of the paperwork.
For purely the compliance work (and if done solely via email), the fee would be about £75 each.
£75 each! that's incredible! No way would I touch this for that amount!
how much would you charge then?
It would depend on the standard of the paperwork.
For purely the compliance work (and if done solely via email), the fee would be about £75 each.
£75 each! that's incredible! No way would I touch this for that amount!
£150 for what will probably be an hours work each year seems very reasonable to me!
That's just the easy bit
£150 for what will probably be an hours work each year seems very reasonable to me!
Doing the return may be a quick job, but it's making sure you get all the correct information, and explaining how it all works to the client that takes up the real time.
If you just bung in whatever the client gives you, and you don't bother explaining it or educating the client, then you can still make a decent profit for £75 per return because, as you say, it takes no time at all.
The only way for a married couple to change the rental sharing ratio is to change the property ownership and file Form 17 with HMRC.
Divorce
2. effect on the financial outcome of a subsequent divorce.
I am no family lawyer but I don't think this is an issue. The court will just order transfers of assets necessary to achieve a fair division. It makes no difference in which party's hands the assets are before the proceedings commence.
£250 per hour sounds high
£75-150 + VAT per return, I doubt it will take you 2 hours every year (I would say you could halve that) and a combined fee of £150-£300 depending on the records seems fair
Doesn't matter how long it takes
All that matters is the going rate for a premium service. That in turn depends on how well you sell yourself. If you can convince the client that a) you know more about landlord tax returns than the man/woman in the pub/office, or the cheapo place down the road, and b) that knowledge is worth paying extra for, then you can still charge a decent fee.
Most new landlords worry about being compliant, so if you can assure them they are safer in your hands, they won't mind paying extra. Minimising their tax bill is also a fee-earner, but they will want assurance that you are minimising it properly, so it is related to compliance.
It doesn't matter how long a job takes. The effective hourly rate is meaningless unless you have so many clients you can afford to pick and choose and rank your time by rate of return.
Don't under-estimate the value of your own knowledge. We didn't study hard for years (and don't spend so much time on CPD now) just to charge peanuts for half-hour jobs in a race to the bottom against people who merely "process" the returns without understanding the tax issues.
The work is worth whatever the client is willing to pay, and that in turn will depend on the going rate for a comparable service. If that rate ever drops to a level where you might as well sweep the streets for a living, then it's time to get out and do something else instead.
Form 17
Sanjay/Jim
I checked Form 17 and it is to elect the actual split if this is not equal. You cannot just elect any split. What were you proposing to do without changing the actual ownership?
Just asking since had this issue with a recent client and they just changed it into the wife's name as was not aware of any election.
Thanks
Yes of course
the couple can change the split in ownership by legally making a transfer. For form 17 the split is the actual split if not 50:50.
Have you read the form?
What did you tell the client?
Oh dear
If the actual split is 50:50 between married couple. Are you saying you cannot change it to 99:1 ?
Trying to charge the client for 'tax advice' and you aren't sure of the rules? tut tut ;)
It's not about how long it takes in all cases
Its about what you know and how long it has taken you to gain that knowledge.
You are giving it away at £75 per tax return.
I think closer to £400 - £500 + VAT for a property income and expenditure statement and 2 Tax Returns.