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Hi. Husband and wife who have 1 and 2 properties respectively.


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Hi all.

  • My wife and I have three properties. I have one, she has two.
  • Mine is in Worcester and my wife's are in Wolverhampton near where we live.
  • We want to build on our portfolio to a net income of at least £2000/mth
  • We both work full-time as civil servants. I project managed the total renovation of our farmhouse including successfully obtaining government grants. What a faff that was but worth it in the end.
  • I listen to the podcasts and subscribe to the property hub website / magazine.

 

I'm looking for advice on accounting. We have started using Go Simple Tax as our previous accountant wasn't at all property friendly and expensive.

We have not previously claimed for all the fiddly stuff like percentage of house use, percentage of mobile bill, travelling expenses as we rarely visit the properties and so on although we do make a lot of calls, send emails and I do repairs now and then on my wife's houses. Is it really worth it? And if we do when we haven't before, will this be flagged by HMRC? If it is, will it be a problem?

Are we better to say we use Cash Basis Accounting or Traditional Accounting? We don't exceed the threshold for Cash Basis but as I don't really understand how each would apply to us or what our previous accountant said we we using.

Would welcome any help /pointers with this.

Thanks

 

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Hi

 

You are entitled to claim for all expenses that are wholly and exclusively incurred in managing your property business. So long as you can justify your claims / support them with invoices HMRC cannot object to you claiming them. 

 

The cash basis is supposed to simplify the accounting, but it is not always the most beneficial for tax purposes. You should contact your previous accountant and clarify what basis was being used, as it could have an impact on your tax. 

Sheryldene Dunne
Accountant & Client Manager

www.propertyhub.net/service/tax/

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We can only give general information on a public forum, and nothing in this post should be interpreted as advice. To speak to us about becoming a client and receiving bespoke advice, call us on 020 3936 2170 or email tax@propertyhub.net

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