Hello, my client renting a property and the property is managed by letting agency. What my client could claim as expenses and what should I put in box 24, as I saw on previous Tax Returns the amounts were deducted (Tax Return 2011/12 was £180, Tax Return 2010/11 £150), and my client do not know what it was? Is anybody can help me, please? Thank , KS Bookkeeping Services
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Box 24 is for "rent, rates,
Box 24 is for "rent, rates, insurance, ground rates" etc. So you need to ask your client if he has incurred any such costs for the year in question. Be aware that if his property income accounts are prepared on the accruals basis, then there may be a prepayment from 2011/12 to include in Box 24.
Sorry, I am entirely lost. Is your client renting out a property to tenants, or are they receiving income from renting a part of their home to a limited company under a licence agreement? Some background would be helpful as your follow-up question doesn't make a great deal of sense.
I have clients who receive income for rental of part of their home to their limited company. Such income is reported in the property pages, and the proportion of home expenses attributable to the business use of the home go in the expenses section in the relevant boxes. Usually the income equals the expenses so there is no profit, but it's a tax deductible expense in the company's accounts.
I'm not sure what kind of a situation you are referring to.
Edit - just realised that you state the property is managed by letting agents so it must be a normal property rental to tenants. I have not seen a "use of home as office" cost in the expenses section of a rental property tax return before. If the property is managed by a letting agency, why would the client have any costs for using his home as an office regarding this property rental?
No, I don't think it would be possible
But that would be possible, and that would be appear in box 24? Do you know possibly how to calculate that amount? I heard about two ways and which ways its appropriate? Thanks, KS
Would it be possible? Why would the client have a use of home as office expense for a property rental? I do not think it is an appropriate expense to be including in the property pages.
Good point
But why the accountants would put those figures without reason?
But why would the client sign off the return as being correct without reason?
probably not use of home as office then...
I will be honest with you, something was deducted as expense in box 24 and my client do not know as she did not give any invoice for the previous accountants, so I am trying to figure out what was deducted previously by the accountants, and I cannot ask them. the amounts was TR 2011/12 £180, TR 2010/11 £150 . Thanks,
I would hazard a guess that the amounts deducted were NOT use of home as office expenses!
I would hazard a further guess that they were perhaps one of "rent, rates, insurance or ground rates".
Presumably your client has given you all of their expense details for the property rental, and therefore you will be able to complete the property pages for this year.
Now this might be harsh but I suggest that you stick with book keeping as mistakes will cost clients money. I only target clients and work within my skill set.
Useful to look at prior years but you are interested in 12/13 and if you have no evidence of costs then the answer in nil.
Insurance?
If your client owns a property which she is renting out, then surely she has some buildings insurance for that property? Landlords insurance? That would be, in my opinion, the most likely explanation for the expenses in box 24.
Business use of your home
Not sure if this is what you were talking about, but there's is a new simplified tax return for 2013/2014 regarding the flat rate of business use of your home.
https://www.gov.uk/simpler-income-tax-simplified-expenses/business-use-o...
Box24
Box 24 is more than likely an estimate of property insurance as sated by sparkler above.
Prof fees will be a provision for the accountants fee whether subsequently paid or not.
As stated above; concentrate on getting the year you are doing correct. There is no secret expense included in any box. The expenses are what they are.
I'm sorry but that's ten questions and the panel have failed to guess your occupation.
Host: "What is it?"
<Pause for effect>
Contestant: "I'm a a Saggar Maker's Bottom Knocker."
Get real
How many of these posts must we put up with???
I visit this site and try to work my way through the unanswered questions on the grounds that they need some help and then we have this joker... "I am maybe not that good"...
Just employ a real accountant to sort this out and stop pretending... Is there a moderator who can deal with this waste of time???
Seriously KS there is no answer to calculating the correct 2012 charge based on earlier years figures.
You need to obtain the full rental income records and establish the correct income and expenses from those records.
Quick question
Do you know how to use a telephone?
If so, use it to arrange an appointment with an accountant. You may get a brief free consultation that can answer your questions. Otherwise, if they seem like they know what they are doing, appoint them to handle the return on your behalf.
My reading of the situation is that you could ask 100 more questions here and still be no closer to getting it right.
.
Any Answers is an excellent forum and there is much help to be found - but contributors will quickly tire of "timewasters" who don't appear to grasp the fundamental concepts of whatever topic they have sought help about. I always think quite carefully before posting any questions to make sure that they do not come across as something I should be expected to know already, or are poorly worded.
I think the fundamental concept which appears to have been missed, in your query, is that you are completing the tax return for the period 2012-13 (that is, 6 April 2012 to 5 April 2013), but you appear to be trying to do so using figures (possibly even budgeted, rather than actual, figures) from earlier years.
You need to go back to your client/friend, and explain very simply that to do the 2012-13 tax return, you need to obtain from your client/friend all of the income and expenses figures that relate to the period 6 April 2012 to 5 April 2013. If your client/friend then gives you the same schedule previously referred to, you need to explain that the information provided is not sufficient, and that you cannot help them unless they give you the figures for the correct year.
I agree with all of the above contributors that you seem a little out of your depth with regard to the property pages of the tax return. Perhaps you could engage a suitable accountant to prepare the return, and ask them to explain all of the figures in the property pages once the tax return is completed, to help you get a better understanding of the tax return.
Finally, I would suggest that you consider that if you are just doing the job to help out your friend, it wouldn't be very helpful if the figures end up being wrong, and your friend might appreciate it if you step aside earlier in the process than later.
Not retiring yet....
Well - this is quite incredible - I don't think our community has ever attempted to help anyone more for such a small return. Apparently KS has completed all of the professional qualifications (can we ask which ones?) and is just doiung a favour for a friend but is unbale to pose a question in a way that we can answer even though many members of this community have tried but failed (I will freely admit I haven't helped because I would rather get rid of timewasters and try to help people who pose questions but don't get an answer) - look Mr KS - if you don't know the answer to this question (these questions) you need to engage someone at your own expense who does.