How do I treat expenses on properties within my limited company?Make Text Bigger
I have had a limited company running for around 10 years for my main work, in the last few years I have purchased some properties for cash in order to rent out.
Last year I bought a flat and spent around £4k changing the kitchen, bathroom, some new electrics and generally giving it a paint up. On the HMRC site it gives examples of what is revenue expense and what is capital expense, are these different if under a limited company, ie. are all expenses allowed to be offset against my company earnings.
My accountant did say that he would not take any expenses into account, but he would offset them against any profit when the properties are sold, I don’t like this for a few reasons:
1 it seems to me he can’t be bothered to go through them
2 that expense incurred is devalued through inflation, if I sell in 20 years time then the £4k is not the same value as it was when the expense was incurred
So 2 questions, are the expenses different through a limited company and if so should my accountant take them into account this year, BTW I have submitted my yer end to him and told him I want them taken into account this year, got a feeling he will not but I’m looking for some ammo for when I meet him to discuss books.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.