9:35 AM, 28th February 2017, About 5 years ago 46
I have spoken to my accountant in relation to Digital Tax Returns and he has advised me that, Landlords will be required to do Digital Tax Returns every quarter. In other words 3 times over the course of 9 months and then final Annual Self Assessment by 31 January.
He has told me that, 3 Digital Tax Returns which will be done over the course of 3 quarters will require the following:
1) All Receipts to back up Expenditure will need to be attached with Tax Return.
2) Every Property Income and Expenditure will “Need To Be Separate”as currently, you lump all properties Income and Expenditure together and put one figure for each Column (Income & Expenditure) This will No longer be the case as in case if you have 20 properties you will need to fill 20 Boxes for each property.
3) So if HMRC decides to look at your accounts which you submit on quarterly basis then they can simply select the properties they wish.
4) All addresses of properties will also be required.
Although above information are already prepared my accountant which we call it Summary Of Accounts however they are not submitted to HMRC unless there is an enquiry however, regardless if there is enquiry or not such information would need to be submitted which is likely to increase accountants fees.
Any idea, if Digital Taxation is definitely coming next year? If so how well prepared you are? My accountant does all my accounting and bookkeeping, but has already indicated that, he will significantly increase his fees.