Even accountants make mistakes – mine did!

Even accountants make mistakes – mine did!

22:07 PM, 31st October 2017, About 7 years ago 26

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Today I had to undiscombobulate my accountants who were in utter confusion over Section 24. Not only had they applied it to my 2016-17 tax return but they had calculated it wrongly too. Fortunately I spotted this and was able to point out the error of their ways, to much embarrassment on their part.

It doesn’t surprise me. The rules are so complicated as to defy belief.

If this has happened to me it will doubtless happen to others and not everyone is so vigilant when it comes to checking detail. Nor is everyone is as understanding and there is a lot of scope for mistakes leading to loss of reputation, loss of business, legal action and more. I can envisage small accountancy firms coming very unstuck over issues like this, not to mention the extra workload for HMRC in having to try and check it all. Tax should not be so complicated that it requires this much effort to work it out.

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Comments

Vijay Khullar

15:03 PM, 1st November 2017, About 7 years ago

Reply to the comment left by Mark Alexander at 01/11/2017 - 13:03
Yes I agree though the computations are easier if there are no finance costs, the problems arise due to deductions for finance costs, including mortgage interest, incurred on or after 6 April 2017 are restricted in computing residential property income (other than from furnished holiday lettings) until 2020/21 onwards when all finance costs will be relieved at basic rate only.

With this interesting, complex, introverted and mind bending legislation I am reminded of Lord Palmerston (PM 1855 to 1865) reminding the Empire that Great Britain's laws and values will be a model for the world to follow. Time for a Gin and Tonic.

AA

15:48 PM, 1st November 2017, About 7 years ago

If I can get it, anyone can get it. (watch me get this wrong).
You can claim the following %age of finance cost
17/18 - 80% -
18/19 - 60%
19/20 - 40%
20/21 - 20%
The question is do I do this calculation manually and input on my SA or do I input the gross interest and the SA calculates the claimable amount. Called HMRC about this and I am awaiting a return call from one of their technicians. Last time a made an enquiry - never received a return call.

Whiteskifreak Surrey

15:57 PM, 1st November 2017, About 7 years ago

Reply to the comment left by Asif Ahmed at 01/11/2017 - 15:48
I somehow thought that it was phased out in 25% chunks...

Mark Alexander - Founder of Property118

16:11 PM, 1st November 2017, About 7 years ago

Reply to the comment left by Asif Ahmed at 01/11/2017 - 15:48
Yep, well done, you got it wrong! LOL

Mark Alexander - Founder of Property118

16:11 PM, 1st November 2017, About 7 years ago

Reply to the comment left by Whiteskifreak Surrey at 01/11/2017 - 15:57
Correct

AA

16:48 PM, 1st November 2017, About 7 years ago

Hold on hold on - my understanding is for 17-18 its 75% plus 20% of the remainder.
For £1000 interest - interest claimable £750 plus 20% of the remainder £250.

AA

16:56 PM, 1st November 2017, About 7 years ago

in 2017 to 2018 the deduction from property income (as is currently allowed) will be restricted to 75% of finance costs, with the remaining 25% being available as a basic rate tax reduction

Mark Alexander - Founder of Property118

17:18 PM, 1st November 2017, About 7 years ago

Reply to the comment left by Asif Ahmed at 01/11/2017 - 16:48
Correct

Mark Alexander - Founder of Property118

17:18 PM, 1st November 2017, About 7 years ago

Reply to the comment left by Asif Ahmed at 01/11/2017 - 16:56
Correct again

AA

17:27 PM, 1st November 2017, About 7 years ago

Which for 17-18 is 80% - No ?

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