If HMRC want detailed accounts information, then why don't they just add some supplementary pages to the CT return, so that we can just fill the figures in on a form, like we do with the self-employment pages for sole traders, or on the partnership pages of the Self Assessment tax return? We could still attach the full accounts as a PDF, in case they want to read the notes, but the figures they need could just be entered on a form. I never did understand why we had to adopt such an expensive and time-consuming system as iXBRL, simply in order to be able to submit a tax return.
I totally agree that the present system is far too time-consuming and expensive. For larger practices, which already use accounts production software, it may not be such an issue, but for small practitioners like myself, who produce the accounts without commercial software, the additional cost of the iXBRL software and CT return software is quite considerable - not to mention the cost of all the time it takes to re-input all the information into the iXBRL software.
I have tried using the HMRC iXBRL service, but it does not cater for rental income, so I cannot use it.
What about "unfurnished" properties?
So where does this leave landlords of unfurnished properties? S308 refers only to furnished lettings. However, most of my landlord clients let their properties "unfurnished", although in practice they are really semi-furnished, as they provide carpets, curtains and kitchen appliances (cooker, fridge, freezer, washing machine etc).
I have always claimed relief for renewals of the above items, but not for their initial cost. Does this basis still apply? Can these items really be treated as "tools" of the trade under S68,? We were told on a recent CPD course that the renewals basis had been withdrawn for landlords. I am totally confused!