Accountant advice needed for 2 co-owned properties

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    Accountant advice needed for 2 co-owned properties

    I co-own two properties with my brother, which have both been rented out for approximately the last 5 years via two different letting agents. One is a house which rents for approx. £1800 pcm and the other is a flat which rents for approx. £550 pcm.

    The agents pay the money into one of my bank accounts each month, and when we need the cash I transfer some from this account to my spending account, and an equal amount to another of my accounts which I then transfer money to my brother from when he needs it.

    It has recently come to my attention that the agent for the house has been paying our tax for us at source, while the agent of the flat hasn’t.

    Throughout the entire period of renting, I have had no other employment, and my brother has been living and working in Asia, so presumably isn’t liable for any UK tax.

    I therefore surmise, that he is due a refund of tax paid at source on the house, and I may be liable for more tax on the flat.

    I would now like to get things on a sensible footing - put things in the hands of an accountant who can set up a Limited Company, establish a bank account for the company, and retrospectively sort out any tax owing or due for refund. Hopefully he will also be able to reclaim some costs of works and equipment that have been carried out on the premises over the years.

    I have no idea how much I should expect to pay an accountant for this work, and perhaps to audit the books once a year from now on. Could anybody suggest a ball park figure?

    I would also gladly accept any recommendations for a suitable accountant in the Essex/London region of the UK.

    Thanks.
    Last edited by Jargonaut; 23-09-2011, 17:15 PM. Reason: typo

    #2
    1. You do not want or need a company. It will cost you in fees.

    2. You do need an accountant to sort out this mess.

    Comment


      #3
      Oh dear.

      Go and speak to a few accountants to get quotes.
      I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

      That also means I cannot share in any profits from any decisions made!

      Comment


        #4
        Best to do some homework first before contacting an accountant.

        Each brother has a gross annual rental income of 50% of 12 x ( 1800 + 550)pds which comes to about 14100 pds per year. The allowable expenses deductable against rental income is the letting agent fees plus buildings insurance (for house) and ground rent & service charge (for flat). If these expenses were ,say, approx 2100 , then the taxable profit would be 12000 for each brother.

        Each brother can claim a Personal Allowance for last year 10/11 at 6475 which leaves taxable sum 12000-6475 = 5525 and tax due at 20% = 1100 pds approx. So if the estate agent for house has deducted more than 2200 tax over the year, then there may be a refund due for each brother.

        So the taxable profit for each of the past 5 years must be calculated and a tax return submitted by each brother . The brother living overseas must register with HMRC as non-resident status.

        Comment

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