Property Rental and Partnership Accounts
Hello, I'm not sure if many people are around, and those who are around are probably very busy. But it's worth a try!
I have a client who has a small business that is not connected to property in any way. He also has rental income from renting out a room in his house, and he's pushing me to include the (modest) rental income in his trading accounts. His main business is registered for the Flat Rate VAT Scheme. He would also like to claim Rent-A-Room relief on his rental income.
I have my own view on whether this is possible, but would appreciate other views. I have used partnership arrangements for rental income before (something that was accepted by a Tax Inspector at the time), and have seen at least one other accountant using partnerships to allocate rental income between a husband and wife.
Is it possible to include the rental income in the partnership accounts, utilise Rent-A-Room relief and not have to worry about paying Flat Rate VAT on the rental income?
- Family Partnership 324 10
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 1,251 24
- Moving to BTC from Sage Accounts Production 67 1
- Restriction of trading loss and overlap relief 187 3
- Multiple for fee bank purchase 220 5
- Business lending another business money (UK) 327 9
- Manufacturer cashback on fixed asset purchase 100 1
- Does anyone have an old version of Sage for sale? 318 7
- Problems viewing AWeb posts 208 5
- CIC Abbreviated Accounts 205 6
- Business trips - director and family 431 3
- Signed accounts for bank 678 15
- flat rate scheme 2,394 50
- Rollover relief - No new asset purchased 337 5
- Can I prepare dormant accounts? 217 2
- How do you integrate prepaid expenses in to the cash conversion cycle? 118 2
- What route into accountancy would you recommend? 879 12
- Deferring dividends on paper 222 5
- VAT Query on new build 137 1
- How to format Co-operative Accounts 134 1