From:  TC 
Newsgroups: uk.finance
Subject: Re: Accountant needed for flat rental?
Date: Mon, 15 Oct 2007 09:19:14 -0000
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Thanks very much for all the tips and links :-)

Regarding mortgage interest being tax deductable, I have an interest-
only mortgage on the property, so although my mortgage payments are
not technically repayments, what I consider my 'mortgage' is in fact
all interest. My estimated annual gross rental is =A310k, 22% of which
is =A32200, yet my total mortgage interest payments for the year will be
some =A31500 in excess of the tax figure. Does that mean I will pay no
income tax at all on the rental income?? It seems too good to be true!

Cheers, TC


On Oct 6, 8:29 pm, PeterSaxton  wrote:
> On 6 Oct, 13:22, Ronald Raygun  wrote:
>
>
>
>
>
> > PeterSaxton wrote:
> > > The accountant should offer guidance in what income and expenditure
> > > should be collected.
>
> > Such guidance is freely available from HMRC help sheets, so the
> > benefit of using an accountant is helpful really only to those
> > who are either too thick to understand the help sheets or who
> > cannot be bothered to try.  That's fair enough.  It's their
> > money and they can choose to spend it or to save it.
>
> > > I don't think anyone is suggesting that a tax payer needs an
> > > accountant to simply unthinkingly copy numbers provided directly onto
> > > a tax return.
>
> > No, but one might suggest that with such simple bread-and-butter stuff
> > the accountant doesn't actually need to expend a great deal of thought
> > in bringing about the result needed.  It's basically a crank-turning
> > exercise, and he would often delegate most of the cranking to his
> > beautiful assistant.  A cynic would raise his eyebrows a mile high
> > at the thought of someone charging =A3300+VAT (or more) for a couple
> > of hours of work which isn't even accountancy but only bookkeeping.
>
> Accountants don't need to expend thought to any great degree in this
> example because they have the knowledge.
>
> You don't seem to be aware of the concept of value pricing.
>
> Say a client needs an accountant to research a particular scenario and
> the accountant does so and presents a report and charges =A31,000 which
> the client is happy with. Another client comes along and asks for
> exactly the same work to be done. Using your logical the accountant
> should give the report to the second client for free!
>
> I'm not sure what it is that you are describing as bookkeeping. It's
> certainly nothing that I have suggested doing.
>
> Maybe you should ask a couple of fools what they think, but I warn
> you, one will just spout insults and the other one will think that
> it's ok for all the country to use BST except HMRC!
>
> There is another fool who thinks that a sole shareholder should just
> take a company's money whenever it suits him but he seems to have
> disappeared so I don't think you'll be seeing anymore rubbish from him
> for a while but you did say you respected his opinion!
>
> Peter- Hide quoted text -
>
> - Show quoted text -