Ive just done a first CIS tax return for 18/19 and in TaxCalc and it used 52 weeks x 2.95
Just wondered as she didn't own another house for that 4 month period until the rental started whether it might be a deemed period; just thought it worth asking
Thank you very much. I did wonder about the 4 month period; she didn't own another house in that period I believe she moved in with her new partner and then it took 4 months to find a tenant. Is it worth claiming that 4 months and see if it is challenged (and advise client of potential risk of a challenge)
Thanks John & Tax Dragon. Totally agree with your caveat. I only have 2 LLPs amongst my client base and both very small so I have never developed much expertise in this area. Large more complicated LLPs I have declined - for obvious reasons!
Many thanks for the clarification .. with hindsight it’s obvious. Very helpful feedback!
I think what is being said here then is that if the Partners have been drawing the money out based on the business they have produced (for simplicity say 75/25) they can’t then report a different split say 50/50 to HMRC.
The Partners can decide whatever split they want but they can’t then report a different split to HMRC to reduce one of their tax liabilities.
Is that about it?
I am just working on the Accounts now and looking at options. No discussions with the client about this to date.
Just wondering what might be reasonable or feasible before suggesting anything to them hoping there might be some way to mitigate a bit of tax if possible and allowable.
The numbers are not huge. The company makes between 10,000 and 15,000 a year profit before pension contributions.
They didn’t make a contribution for the Director in the 2018 reporting year so it would seem from the feedback they could make one of say 20,000 in the current year 2019 which would create a loss and then carry the loss back to the 2018 reporting year and get a CT refund.
Client turnover is over 100,000 so MTD will apply.
I think dumping the spreadsheet makes sense but the question is how much detail is acceptable under MTD? Will HMRC expect details of income from every room for every night, or total income received for a day, or total income received for a week, or total income received for a month?
Have they made this clear anywhere or is it just wishful thinking?
Yes thats right so the net amount of £1500 would be taxable.
Ruddles I just wasn't sure whether the lodgers income would be added to his land and property income or treated completely separately as rent a room income. Clearly it seems they can be treated separately.