any thoughts, tips by landlords. persons who are not full time landlords, how do we manage?
Use an accountant. Then you don’t need to worry.
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I have had an a/c for 40 odd years Good advice I do not even add up the columns as I always get it wrong! Never any good at maths.
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sorry I did not mention in the post, I have an accountant, but I think we need to be more organised as each property expenses and ins to he recorded and sent to hmrc every 4 months?
i have not asked my a/c how this works >Do I have to see him every 4 months /?
no we dont need to meet but he said it is for April 2024 submission. But we will have to maintain records for each property and give it to him, now if they have to submit to hmrc so often then accountants will be charging more.
I had a chat with my accountant and he suggested to put my figures in a spreadsheet and he will enter them for me , obviously there will be a fee or I just use a software and do it my self and let he do end of year accounts, I been using untied.io for the last few months and it’s linked to my bank account and it shows all my figures etc , it did take a bit of getting use to .but very good software.
OK, too much work! thanks
i do not get why this is being done . Nothing will be for our benefit. How does it benefit the goverment .Do they get their money 4 or 3 times a year ,thus quicker?
to crackdown illegally owned properties, money laundering, illegal traders.
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The official line is that it is so that HMRC have a better idea of the income that will be coming in when the self assessment returns are filed which will help the government to budget.
There are officially no changes planned to tax due dates, so no cash flow benefits to HMRC, but I would no be surprised to see changes down the line!
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If you want to keep costs low, as a landlord, I would be looking at using a dedicated bank account for letting income and expenses ( eg I use an old current account for mine, but you could use one of the new banks such as Starling - they do free business accounts).
And then, you can either
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download the statements into a spreadsheet and analyse them and then either send that to your accountant to file, or file it yourself using bridging software.
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sign up for an accounting package and link that to your bank and file from that.
There’s a list of compatible software here …
The list of officially released compatible software is short at the moment, but there is lots being developed. There is likely to be free bridging software amongst them when the time comes.
If you have an accountant, you might want to be guided by them on software. Eg I tend to use QuickBooks with my clients and provide it to them at cost (accountants get a 50-60% discount on full price). But I’m also looking at Hammock.
If you don’t have an accountant, I probably would not make a final decision on software for at least another year because the offerings are going to keep changing as more companies come into the market.
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They probably think they can catch someone who does wrong quicker and in a more efficient way!. who knows the proposal may not even go ahead now! let’s wait and see.
It is the easiest thing to check that rent is being declared. .Taxman only has to ask the tenant how much they pay
by micromanaging our lives!
basically hmrc want to see how much money comes in for each property and whether the right amount of tax paid for each to be precise.
They have to identify that it is a buy to let first though. MTD won’t help with that though.
They are not asking for any more detail under MTD than they do on a tax return.
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I’ve just got 1 property now and the Gross rental income is less than £10K p.a. so I don’t have to comply with MTD - can stick to my one return each year (
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