Preparing your tax year end - a dummies guide
The new tax year has begun, and our accountants will start pumping out letters asking for our year end accounts as soon as possible. Many people will defer this task until December, but I for one, like to get prepared well in advance so that the nasty bill that arrives from the inland revenue isn’t too much of a shock or ruins my Christmas!
So, the task of calculating everything on your rental portfolio from all rents received to agent’s charges and all the maintenance costs that you have spent through the year. As the tax rules seem forever changing, its sometimes difficult to know what items of expenditure are allowable expenses and what constitute as improvements to the property.
And that’s where your managing agent can help! Just as you get weekly or monthly statements from your agents, you can get a year end statement. Often some expenses for one property are deducted from rents received on another. So, to make it clear and easy, we are able to supply a “consolidated” yearend statement available for all our landlords.
The report, details the following
· Total rent a received during the tax year
· All Agency charges
· All expenditure per property is itemised thoroughly for your accountant to look at and establish whether it’s an allowable expense or not
· A final “nett income” figure per property
Yes, tax is a painful process, and I suspect that it won’t get easier for landlords who are seen as an easy target right now. But at least by preparing in time, you’ll be ready to put aside a few coins for when the bill becomes due.
Category: Preparing your tax year end - a dummies guide
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