PLATINUM ACCOUNTING SUPPORT
Micro Business and Sole Trader Accounting
How it works:
We set you up on XERO
We link your business bank statement to XERO and upload bank transactions weekly
You provide documents for your sales and purchases weekly
We upload them on XERO and reconcile to Bank Statement
We prepare monthly Balance Sheet and Profit & Loss
We prepare annual UK Company Accounts and Tax Return
Sarbanes - Oxley Testing
How it works:
We perform walktrough of your process and prepare flowcharts
We write test procedures for all key and non-key controls
We test and document the testing to a high standard
Tax on Rental Income
Income from property rental must be declared in the relevant section of the Self-assessment tax return if it is:
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£2,500 to £9,999 after allowable expenses
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£10,000 or more before allowable expenses
The following expenses are allowable:
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letting agents’ fees
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legal fees
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accountants’ fees
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buildings and contents insurance
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mortgage interest (but not capital repayment)
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interest on property loans
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maintenance and repairs to the property (but not improvements)
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utility bills, like gas, water and electricity
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rent, ground rent, service charges
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council tax
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services you pay for, like cleaning or gardening
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other direct costs of letting the property, like phone calls, stationery and advertising
Note that in Budget 2015, the relief on mortgage interest is capped at base rate of 20%, not high rate tax of 40% or 45% as previously allowed.
In addition, from April 2016 residential landlords will not be able to claim the 10% wear and tear allowance. They will be allowed to claim only the actual repair costs incurred.