Capital allowances & tax form - help needed

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rosebud
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Capital allowances & tax form - help needed

Post by rosebud »

I am filling in the self assessment tax form for my holiday let for the first time.

Would be very grateful if anyone could help me with some things I don't fully understand.

I assume that the private use adjustment doesn't apply to capital allowances - only to all other expenses - is that correct?

I understand that work on electrical systems can be included with capital allowances as they are 'integral features'. Can I include electrician's total bill (labour and parts needed)?

Where do I include the cost of plants for the garden - mainly perennials - so lasting for years - under cost of services (like gardening) or capital allowances? What about compost for garden???

Perhaps I should have gone to an accountant - probably a bit late now - any recommendations for someone who specializes in holiday lets?
marsh frog
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Post by marsh frog »

You're not alone Rosebud!!! We are facing our first tax return but found it so complex we have found an accountant and are seeing him tomorrow. He isnt a FHL specialist but for our first one we are hoping he will do a better job than we are!! We only found him in the last few days ourselves. Good luck!
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Nuthatch
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Post by Nuthatch »

I've always put plants/pots/compost etc through as general maintenance and the accountant has never queried it. I would also be tempted to put the electrical work through as maintenance unless it's for a brand-new system, and yes, I've always put the whole bill through without query (and we were VAT inspected in the early days!). We use DHC Accounting for our place (from when we started out with Yorkshire Cottages) and have found them to be pretty good - FHL is one of the speciality service on their website.
DaveN
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Post by DaveN »

I've found TMC (Tax Management for Clergy) quite helpful, and for a reasonable fixed cost. I was introduced to them by a vicar friend.

It makes sense I suppose, as quite a few clergy go into ministry later in life, keep their own home for retirement when they do so, live in a vicarage for the rest of their working lives, and let out their home as a FHL...

They travel the country each year if you want a face-to-face session, and are otherwise at the end of the phone.
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Windy
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Post by Windy »

They travel the country each year if you want a face-to-face session, and are otherwise at the end of the phone.
Our vicar tend to stay put these days.

It may be me , but when HMRC let Vodafone off billions I can't get excited over whether the tax impact of plants is 100% accurately apportioned.

I put flowers under maintenance as they tend to die off when I plant them. I suppose if they were perennials and made it through they should technically be written down, but I'd be absolutely delighted to have to debate that one in the press with HMRC.

Seems to me that as long as you are honest and you do best to declare things there should be little to worry about.

If you do it wrong you may have to make an later adjustment - or pretend to be Vodafone and get away with it. :-)
cysgod y coed
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Capital allowances

Post by cysgod y coed »

Private use adjustment DOES apply to capital allowances.
You can claim capital allowances on the full cost of installing kitchens, bathrooms and central heating systems.

Repairs cannot be claimed for capital allowances, but can be claimed as repairs.

Do read the help sheets provide by HMRC

Get your return sent in over the Internet before 31st Jan to avoid £100 fine.
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rosebud
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Tax form

Post by rosebud »

Thanks everyone. I eventually submitted my form before the 31st but then sent everything to DHC Accounting as I wasn't confident that I understood enough. I will amend my figures if necessary and hope to do everything myself next year.
Annew
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Post by Annew »

Sometimes an accountant is well worth the money if you don't understand the finer points .... :-)
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