15:11 PM, 1st November 2010, About 11 years ago
As the deadlines for filing rental accounts fast approach, here’s a quick guide to how the taxman expects property investors to keep financial records.
Keeping records for a rental business means:
If a property is jointly owned, in law, each owner is responsible for retaining his or her own financial records. In practice, nominate one owner as the portfolio manager and charge them with the responsibility of dealing with the records.
The records you need to keep depend on your rental business – buy to let, developers and holiday lets need to provide different information to the taxman. You must ensure that the business income and expenditure entered in your tax return is accurate.
An accounting system should include:
Keeping financial records up-to-date is crucial. Updating the books monthly is easier and quicker than putting all the paperwork in a bag until the year-end and trying to work out who spent what and why a year or so after the event.
Business accounts can be kept as paper or electronic records.
If you would like further advice on tax or accountancy please call The Money Centre’s Customer Care Team on 01603 894525 and we will be delighted to refer you to our Joint Venture Tax Partners who specialise in property taxation. The initial introduction is a no cost no obligation service.
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