HMRC and s24 advice – How lazy can you get?

HMRC and s24 advice – How lazy can you get?

8:39 AM, 22nd March 2018, About 6 years ago 20

Text Size

The financial year end is almost upon us so I phoned HMRC and asked the question in claiming interest do I do the calculation myself – input 75% of my interest paid or do I input all the interest I have paid and their system will do the calculation. Apparently its the former.

So where is my 20% of my remaining 25% tax credit – do I work that out myself ? More alarmingly given the number of accidental / amateur landlords apparently out there oblivious to s24, how many will click on the icon next to the interest field to look at worked examples ? (This is what I was told).

Potentially there could be hundreds of thousands incorrect returns with over claimed expenditure.

How lazy can you get – can I get some service from HMRC?

AA


Share This Article


Comments

Neil Patterson

9:00 AM, 22nd March 2018, About 6 years ago

In my experience a good accountant will always save you at least what they cost.

Dealing direct with HMRC can be very pot luck if you even get through.

Fed Up Landlord

9:13 AM, 22nd March 2018, About 6 years ago

Reply to the comment left by Neil Patterson at 22/03/2018 - 09:00
Agreed Neil. My accountants charge me £600 a year for 2 self assessments, rental accounts of £50,000 and business turnover of £150,000. They save me probably 4 times that in tax.

moneymanager

9:21 AM, 22nd March 2018, About 6 years ago

Rather like claiming (declaring) and claiming (using) losses, it's down to you to record and claim the reducer thet YOU believe you are entitled to; can't wait for MTD.

Phil

10:10 AM, 22nd March 2018, About 6 years ago

Frankly, if you are a btl landlord then it should be your business to know or take advice as to how the interest relief should be applied. There is a host of useful information on the HMRC website plus webinars to assist landlords on how to apply the section 24 rules.

Neilt

10:17 AM, 22nd March 2018, About 6 years ago

Reply to the comment left by Gary Nock at 22/03/2018 - 09:13
Would love to know who your accountant is, if he works out of London and the South East. Good accountants at a fair price are a rare commodity.

AA

10:32 AM, 22nd March 2018, About 6 years ago

Accountants can get thing's wrong and the buck still stops with you. Principally YOUR tax affairs should not be beyond YOU. By the time you have clarified details of what has happened to your accountant over the last year you may as well do the SA. I feel that the SA is not fit for purpose - initially for Joe average to declare their tax position and now suitable for only those with a University degree.

Dennis Forrest

10:38 AM, 22nd March 2018, About 6 years ago

You have been give wrong advice by the person you spoke to at HMRC. Your tax return is to provide necessary and full information not to adjust the figures because of tax legislation. The HMRC will make the adjustments for you. In a similar vein when you put on the tax return any bank or building society interest you put on the full amount and ignore the fact that the first £1,000 is tax free if you are a 20% tax payer, the first £500 is tax free if you pay tax at 40%, and sorry to say it is £0 tax free if you pay tax at 45%. As a tax payer at the present time we do not have to do any calculations to work out our own tax bills but just to provide full and honest disclosure of all relevant information.

AA

11:48 AM, 22nd March 2018, About 6 years ago

Reply to the comment left by at 22/03/2018 - 10:38
Yikes ! I spoke to a technician, and she allegedly read from the icon notes that will be available to us when we complete an SA. This is not confidence inspiring at all.

Michael Barnes

0:14 AM, 23rd March 2018, About 6 years ago

Reply to the comment left by Phil Ireland at 22/03/2018 - 10:10
Please point us at where it says what information will have to be entered into the tax return.

1 2

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now