Rental property
System
Posts: 100,534 🤖 Admin 🤖
Hi,
Wondered if anyone would be able to help...
A friend has asked me about tax issues regarding her rental property. She has been paying a lot of tax each year and it now transpires that she has not been off-setting most of the allowable expenses that you can, ie.mortgage interest, utility bills, agents bills etc. Therefore, her tax bill for the property has been vastly over what it should have been.
The current situation is that she still owes a balance of the tax due for 04/05, and then has to do her return for 05/06 (for which i'm going to give her the info for everything she can claim against!).
What i would like to know is if she can claim back any of the tax that she paid/is due once her returns have been put in, or if she just has to take it as a loss and look to the future...
Any help greatfully appreciated!
Many thanks
Melanie
Wondered if anyone would be able to help...
A friend has asked me about tax issues regarding her rental property. She has been paying a lot of tax each year and it now transpires that she has not been off-setting most of the allowable expenses that you can, ie.mortgage interest, utility bills, agents bills etc. Therefore, her tax bill for the property has been vastly over what it should have been.
The current situation is that she still owes a balance of the tax due for 04/05, and then has to do her return for 05/06 (for which i'm going to give her the info for everything she can claim against!).
What i would like to know is if she can claim back any of the tax that she paid/is due once her returns have been put in, or if she just has to take it as a loss and look to the future...
Any help greatfully appreciated!
Many thanks
Melanie
0
Comments
-
Re:Rental property
Hi Melanie.
The best advice you can give your friend is to see an accountant - they will charge for their services but will reduce the tax liability, and reclaim any tax overpayment. Also the accountant's fees are an allowable expense.
Scott.0 -
Re:Rental property
If you're friend thinks she has paid too much tax she/he has 5 years from the annual filing date in which to make an error or mistake claim.
It may be worth your friend contacting HMRC for advice or as Scotty suggests see an accountant who can submit a claim on their behalf.0 -
Re:Rental property
Thanks for your replies,
Does anyone know how an accountant might go about reclaiming the tax? She wants me to help her if i can as she says she can't pay out anymore as she's just paid a big (although wrong!) tax bill. She did contact her local tax office who said that they couldn't advise her...so she's a bit stuck really and i'd like to help if poss.
TIA
Melanie0 -
Re:Rental property
You might find that an accountant will take his fees out of her refund and pay over the difference meaning she wouldn't have to pay out in advance.
I can't recommend strongly enough that she sees a professional - I can almost guarantee that you won't be able to help her for her full benefit. Don't bite off more than you can chew!! I don't mean that to be offensive as I know you are only trying to help but a proper accountant will do it all above board with no mistakes (hopefully)
Annette0