When is an accountant required? and would you bother with a very short previous year?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    When is an accountant required? and would you bother with a very short previous year?

    We started decorating the property in January 2020 to rent out. We got the property online in March 2020 via an online agency. But only got tenants in last month.

    Do we wait until April 2021 to get an accountant to do our 2020-2021 tax returns? When we have all the income and expenses of this financial year as if we had started on 6th April 2020.

    If we do 2019-2020 tax returns an accountant would cost us £500. So therefore we would need £2500 of expenses which would give us a tax rebate of £500. Seems a hassle for nothing. Plus we didn't keep many receipts for expenses as assumed we could both claim £1000 of property allowance. But having read other posts if we claim the property allowance we would still need receipts?

    #2
    You can declare the rental income and expenses as happened in the tax year 2020-2021.

    Best if you can set up one bank account to receive all the rents collected and pay out expenses by cheque. So you can keep one set of bank statements to prove your transactions.

    For only one property, you can use an online accountant firm to prepare and submit your tax return and probably costs around £150- £200.

    Keep a copy of the first year tax return and consider preparing the tax return yourself in future. .

    Comment

    Latest Activity

    Collapse

    Working...
    X