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We Just Enter Data
We Just Enter Data
By Marie walshe In Uncategorized Posted August 29, 2017 0 Comments

Some of my clients don’t want to claim the full benefit of their expenses and quite often there are interesting reasons behind this which can be difficult to understand.

I have sole trader client with a portfolio of rental properties and have prepared her tax return for a number of year. Client does her own bookkeeping on spreadsheets and we check over and prepare her tax returns. This year her spreadsheets have no mortgage interest. On questioning the missing figure she stated that she does not want to claim tax relief on the mortgage interest this year and is quite happy to pay the higher amount of tax as she wants her rental profits on her tax return to be higher. I have explained that the rental accounts must show a true and fair representation of her rental business without the mortgage interest. She said that she will go to an accountant who will prepare the accounts in the manner she wants as she believes I am incorrect in demanding the mortgage interest figures.

I normally try to understand why a client might request that no mortgage interest be shown on her return. It could be any of the following

She wants to raise some new funds on the strength of her forthcoming SA302 would she and wants to make her portfolio more profitable than it actually is. You know what will happen then, if you take that approach.

Maybe she will want the return amended. ‘Oh, I’ve been thinking and I reckon you are right after all . . . ‘ or she will seek to put 2 years worth of interest in her next year’s spreadsheet. ‘Well, it’s only fair isn’t it . . . ‘.

Is it possible she has actually paid off the mortgage but does not want to tell you because you will ask her where the money came from?

What do you think? Anyone out there who thinks accounting is about entering data does not understand the level of people skills behind trying to ensure that the client is happy with the return and ensuring that they don’t fall foul of HMRC.

I’m sure it also won’t surprise you to learn that these are all things we can help you with.  This may come as a surprise – we do a free review of your property portfolio.

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