Accounting Questions

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

  • Guest's Avatar
    Guest replied
    Thanks very much for the clarifications and insight.

    Sorry, forgot to mention that it would indeed be on an individual basis - no LLP, LTD etc.

    Leave a comment:


  • King_Maker
    replied
    I assume you're doing this as an individual rather than a limited company or LLP etc? If so, you will need to decide whether to use the Cash Basis or Accrual Basis - if the former is an option.

    My "default" position is now leaning towards company - but it does all depend on the investor(s) precise circumstances.

    Normally, all UK properties are treated as a single business - unless not let at a commercial rent etc. One of the main problems is likely to be distinguishing between revenue and capital expenditure - only the former is deductible from rental income.

    The more classification the better, IMHO. They can be amalgamated later for the Tax Return.

    A Balance Sheet can be very useful to track mortgages and capital expenditure - the latter might not be needed for many years (one of my clients had over 20 years to deal with for CGT purposes).

    Leave a comment:


  • r361y5pe5i
    started a topic Accounting Questions

    Accounting Questions

    Hello,

    First post here but have been a reader for a while, I have placed it in the "tax" board as I feel it is the closed match, but I fear it is more of an accounting question. I hope that's OK.

    I am away to rent out a couple of residential properties and am seeking a little clarification on the best accounting practice for this; I have rented out property before but am a little out of date so now doing my research in obligations etc. I am in the process of appointing an accountant and letting agent, but intend to do my own bookkeeping under advice. Despite this, I do like to have at least a basic understanding of how things work in my own mind so I don't go into discussions totally blind, anyway - to get to the point...

    When organising an accounting scheme in which ever software does one need to account for the income and expenses from each property separately, or can they all be combined together in one? I realise it might be good to do it separately to see how each individual property is doing, but from a more official HMRC/accounting point of view, which is best/required?

    Similarly, when recording allowable/unallowable expenses, are these best recorded under each heading for ease of calculation, or can the all just be under general expenses?

    Any guidance gratefully received.

    Thanks

Latest Activity

Collapse

  • Reply to CGT and income
    by slopemaster
    Thank you all
    06-07-2022, 14:47 PM
  • CGT and income
    by slopemaster
    Considering selling our rental property and trying to estimate how much CGT is due. We are both basic rate tax payers and the gain from the property will take us into higher rate, so the amount of tax we pay will depend on income for that year – it does vary year to year. I presume the relevant income...
    06-07-2022, 05:47 AM
  • Reply to CGT and income
    by Lesney Park
    Yes

    You do, or better an accountant but essentially you report and pay the gain at HMRC https://www.gov.uk/report-and-pay-yo...r-6-april-2020 estimating what you need to, and then report it again essentially in your tax return...
    06-07-2022, 08:34 AM
  • Reply to CGT and income
    by jpkeates
    You estimate your income for this year and declare and pay the tax accordingly.
    When you complete your tax return for the tax year, the figures are adjusted then....
    06-07-2022, 08:27 AM
  • Reply to CGT and income
    by theartfullodger
    60 days not 2 months.
    06-07-2022, 07:50 AM
  • Reply to SDLT and first time buyers
    by DoricPixie
    How old are these children if they have yet to go to university?...
    04-07-2022, 22:50 PM
  • SDLT and first time buyers
    by mpppen
    Hello again.

    Just wondering if someone can advise.

    If I sell a BTL to my children who do not own their own property, I understand that they'll get the stamp duty relief.... two questions then.

    If they're buying the £350,000 jointly, does the relief count for...
    03-07-2022, 21:52 PM
  • Reply to SDLT and first time buyers
    by jpkeates
    If the buyers are going to rent the property while they go to university, it may meet the criteria for Stamp Duty Relief but it may not.
    It would be unusual for siblings leaving university to be able to commit to cohabit in a particular place when they graduate.

    There's obviously...
    04-07-2022, 15:14 PM
  • Reply to SDLT and first time buyers
    by AndrewDod
    Apart from anything else, if you are selling the property to the kids, you are getting cash and they have a 100% mortgage - and then they are not actually paying a mortgage on 100% of 350K you will be paying it -- it is not a classic GROB, but risks falling foul of GROB rules - so when you die, even...
    04-07-2022, 14:45 PM
  • Reply to SDLT and first time buyers
    by mpppen
    Thanks.

    Yes, the lender is happy to lend them 100% the purchase price so not gifting on our side. In essence, it's just removing it from our name into theirs as he is also our lender.

    It's unusual I appreciate but it's a private commercial lender - if that makes sense. His...
    04-07-2022, 13:55 PM
Working...
X