Accountants and Self Assessment

[Barrysh]

Hi, I purchased my first rental flat last year and decided to get an accountant to fill in my self assessment. It was not complicated in any way by my circumstances. I work 2 days a week and gave him my tax codings etc from work. I gave him details of interest and dividends from savings. Gave him total income from rent and expences (it's an ex council flat). He charged me £630 for what seemed like very little work, He didn't find me any huge tax savings that I couldn't have found myself. It seemed a large chunk out of the £4000 profit. I often see advice saying it's worth hiring an accountant as they can end up saving you money ? On a straight forward assessment like mine is it easy enough to complete it yourself. I have worked all my life in Local Government administration so I am used to form filling. I'm sure accountants are worth their weight in gold in large dealings with the tax office but could I do without one.

Thanks, Barry

[Richlist]

Yes, most people can manage to complete their self assessment forms themselves. In your case there are 3 elements.....employment, savings & investments & land & property.

Accountants don't normally charge more than a couple of hundred pounds unless your affairs are complicated or the paperwork is in a mess.

The land & property part is the only one likely to present any problems and the only problems are knowing what you can claim for.

There are some really good books on the market that are worth a read.....recommend ''How to Avoid Property Tax' by Carl Bayley.

There are lots more than mortgage interest, agent fees, insurance & repairs that you can claim for, here's some of the headings of my long list of expenses that I have claimed:

Agents fees, ground rents, service charges, loan interest, wear & tear allowance, freeholder permissions, utilities during voids, repairs & maintenance, car mileage, car capital allowances, postage, home / office telephone, mobile telephone, ISP costs, books & publications, printer inks/ cartidges, cleaning materials, stationery, bank charges, use of home as office, repairs to equipment, car parking, insurance -buildings/ contents/ landlords, training courses, dry cleaning bills, rent guarantee insurance, advertising, consumables, computer software, photocopying, EPC certs, capital allowances, legal costs etc etc.

It makes end of year accounting a lot easier (and is likely to keep accountancy costs lower ) if you :

* have a dedicated bank account for your rental business.

* use a proper bookeeping process with numbered receipts.

* keep separate records for - car trips/ mileage, capital expenses & any future capital gains tax expenditure.

Come back if you have any specific questions.

[Melboy]

Not forgetting Barrysh that out of that sum of £630 there is a VAT element of £126 which your accountant will be handing over to HMRC at some point in time.

Best you do it yourself . If I can do it then anyone can.