Our Patch march 2017
Your essential guide to local partners for
your home
The hours spent searching for the right property have finally paid off. It’ s in your sights – but what to do next? Our experts will help pave the way – and protect your wallet from any unforeseen surprises
ACOUNTANT >>
Paul Watson Director- Passman Leonard p. watson @ passmanleonard. co. uk Tel: 07834 323400
Crown House 72 Hammersmith Road, W14 8TH Tel: 01895 434 515
www. passmanleonard. co. uk
Landlords are under the cosh. The increase in stamp duty, loss of the wear and tear allowance, and the cut in mortgage interest tax relief has hit hard. And there are still choppy waters ahead, says accountant Paul Watson.
HMRC is axing the dreaded annual tax return in favour of a new, fully digital system. Should landlords welcome the change? From April 2018, they will be required to submit quarterly returns, paying tax as they go, plus a final fifth return for any mopping up adjustments. This means the taxman receives tax sooner and has more evidence for enquiries – and landlords have less ability for retrospective tax planning.
How will the new system work and what will the taxman be looking for? It will trawl through databases like the Land Registry and the DVLA, allowing the HMRC to check if landlords have declared rental income and disposals, profiling their lifestyle to see if it matches their income level. For instance, if you buy a sports car, the system could raise a flag if it deems you couldn’ t afford it based on the income you’ ve declared. The HMRC will also have direct access to be able to review your bank accounts.
What do landlords need to do now? It is important to understand that in this new digital world they need to ensure their records and declarations are accurate and up-to-date. We can protect them in these turbulent times.
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