I have been working with/for a financial advisor now for a good few months, and its going well, (i hope... lol). This client we have has one buy to let property with all assioiated incomings and out goings. I've compiled all the information and have set up a basic Balance sheet. As shown:
GROSS earnings
0.00
TAX
0.00
NET earnings
0.00
Rental Income
4,545.53
Maintenance
271.07
Mortgage Interest
3,627.04
Insurance
451.17
Management Fees
592.84
Misc Charges
1,325.00
6,267.12
NET Property Income
-1,721.59
Net Income for year
-1,721.59
(this is for a older year) but gives a general view of what i've done. The only thing missing is the income from his personal job which will come from his P60. (misc expenses are primarley for repairs, but i have noted CAPITAL expenditure seperatly, when it occurs, as you write this down else where on the SA (is that right))
This is as far as i can see all the information i need for his S.A, but i cant help thinking there's something missing! Can someone either put my mind at rest, or put me outa my misery!....
You said you thought there was something missing. You have a client who has employment income and BTL income on their SATR. I wasn't sure what else you were expecting.
With a property loss, you carry it forward to offset against future property profits. If you didn't, and say your client's property income made a profit in future years, your client could be overpaying income tax of £344 (£1,721 x 20%).
Its just that this is the first time ive had to complete a SATR and I'm just a little paranoid that I'm leaving something out and if I do then the client could be more likey to pay more tax, which then comes back on me as the agent! :/ First return jitters I'm sure!
On another note about the losses... one of the clients hasn't done a SATR since like, forever!!! which means he'll be fined by HMRC im sure, but if i work out 10-11's return first, then file the others, should that be ok? Or will I have to start from the very begining and file each one chronologically, due to there being MAJOR losses in some years and some 'small' circa £500 gains?
All help greatly received!
Gary
-- Edited by ClawzCTR on Friday 26th of August 2011 09:05:50 AM
You would be better to start from the beginning as losses need to be carried forward and used up as required and you wont know that until you've worked it all out. If there's no tax due then the fines are likely to be cancelled for the older years. (This doesn't apply from now going forward though).
__________________
Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
I tend to find that where you've got a few years to do, the best approach is to get all the information together and summarise for all the years, decide what to do re losses, maybe waiver capital allowances, etc.., then when you've decided the best approach, complete the returns and file all together.
NB I'm not sure whether your "on another note about the losses" paragraph whether the losses are from a BTL or a trade - which may be relevant as the rules are different for both.
Can someone either put my mind at rest, or put me outa my misery!....
