Form 12-revenue requesting more info

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guideanna

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Hi all,

Sent my Form 12 tax return in a couple of weeks back and just got a letter back from them requesting additional info.
One of these is computation of the capital allowances?

Just wondering how should i supply this, is it copies of the receipts, or a breakdown of the total and if so do i itemise each amount.
This was my first year filing so apologies if this is something i should know, should i have sent this in with the form12?
 
I think you just need to itemise each appliance/furnishings and put the value you perceive them to be beside them. The total claimed for should be the % value of this. Never asked for this before but perhaps your figures are quite high ?
 
When sending in Form 12, the Revenue do not like to get extra bits of information. If they want to see documents, they will ask, as you found.
 
guideanna said:
Hi all,

Sent my Form 12 tax return in a couple of weeks back and just got a letter back from them requesting additional info.
One of these is computation of the capital allowances?

Just wondering how should i supply this, is it copies of the receipts, or a breakdown of the total and if so do i itemise each amount.
This was my first year filing so apologies if this is something i should know, should i have sent this in with the form12?
Click to expand...

Computation of the capital allowances simply means just that; not the receipts for the items, but a breakdown of what the capital allowances have been claimed for. If they still have a problem with your figures then they may ask for receipts / proof of the values you are writing down.

So it would look something like:

Fridge / Freezer 500
Dishwasher 350
Washing machine 350
Tumble dryer 300
Kitchen furniture 500
Sitting room furniture 1,000
Beds / mattresses 1,100
Carpets 1,200
------
Total furniture/fititngs: 5,300

2010 claim:

Opening tax written down value: 5,300 (assuming 2010 is 1st year)
Wear & tear claimed 2010: (663)
------
Closing TWDV: 4,637
 
Thanks for the replies, yes it would have been a large amount since it was my first year and i had to have a new kitchen, new floors, tiles, and furniture put in to get it set up for renting.
Will get working on that tonight so and get an excel sheet done up with the breakdown of the total.

Thanks
 
Some of that stuff sounds like it mightn't be eligible for capital allowances.
 
I don't think a kitchen as total is covered, only the white goods so be aware of this.
 
what would be considered reasonable for a 3 bed house? 15 grand ok?
Also can stuff outside house be included - shed, decking, fencing, gates etc..?
 
If you cant take it with you i wouldnt claim capital allowances on it - it's enhancement

Retiling and other such things could fall under repair expenses
 
portstorm said:
what would be considered reasonable for a 3 bed house? 15 grand ok?
Also can stuff outside house be included - shed, decking, fencing, gates etc..?
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What's reasonable isn't relevant...it's what was actually spent that counts.
 
Well i put tiles and kitchen under capital allowances as i spent all of this before the place was rented to get it ready for rent. i was advised that capital allowances was whatever i spent to set up the place for rent?
Am i now looking at having to move things from capital allowances to expenses? Bathroom fittings, kitchen appliances, flooring, tiles, furniture-not as replacement but as new to furnish the place....am i after messing it all up now?
What will happen if i have?
 
guideanna said:
Well i put tiles and kitchen under capital allowances as i spent all of this before the place was rented to get it ready for rent. i was advised that capital allowances was whatever i spent to set up the place for rent?
Am i now looking at having to move things from capital allowances to expenses? Bathroom fittings, kitchen appliances, flooring, tiles, furniture-not as replacement but as new to furnish the place....am i after messing it all up now?
What will happen if i have?
Click to expand...

Nothing to panic about, if they aren't happy with the claim they will tell you, and make the necessary changes - from the sounds of it some of the items you've claimed for wear & tear would be proper to expense (EDIT: to the extent that the expenditure wasn't pre-letting!), so this will reduce your rental income (or increase your rental loss to carry forward).

What should happen is they will set you straight going forward.
 
The initial cost of decoration, repairs setting up a place for rent is not allowed for CE. Any repairs done while renting or updating between rents can be claimed as expenses for the year in question. Furniture, fixtures and fittings and anything that can be removed simply without being an enhancement is regarded as CE. Tiles, most bathroom fittings, kitchen worktops, shelving would generally not be CE. My advice would be to list all you claimed for in getting to your initial figure filled in your form 12 and let revenue decide what you can and cannot claim for. They will simply seek a tax amount from you of the difference.
 
This sounds like a case where paying for proper tax advice in the first instance would have saved the OP a lot of worry and hassle, and probably some money too.
 
How would it have saved me money?

I'm pretty sure there was nothing i could have claimed for that i missed and i would have had to pay an accountant to do the forms for me which i was willing to take the time and worry of and do myself.
Looks like i may have mixed up what i can claim as CA and what should have been expenses but from previous post sounds like it's easily fixed.
 
guideanna said:
How would it have saved me money?

I'm pretty sure there was nothing i could have claimed for that i missed and i would have had to pay an accountant to do the forms for me which i was willing to take the time and worry of and do myself.
Looks like i may have mixed up what i can claim as CA and what should have been expenses but from previous post sounds like it's easily fixed.
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You are in a better position than I to decide whether you may have saved money. That said, putting yourself in a position where you end up letting Revenue decide what you can and cannot claim is hardly the best way to maximise your deduction entitlements. Their business is tax collection, not tax advice.
 
Yes but you said if i'd got someone to do it i would have saved a lot of money....just because i put some items that should have been under expenses as capital allowances doesn't mean the revenue is going to refuse to allow me claim these things, they will just allocate them under the correct heading.

I don't feel i needed to hire someone to file a tax return i am capable of doing myself and like that, revenue have been quick enough to clarify the amount and i'm sure will be equally quick enough to correct the error if required. No harm done if so.

Don't think it's been that much hassle or worry at all and think i'll have saved money by doing it myself.
 
Relax, it was merely a suggestion. As I said, its your decision.

ps I never said you 'would have saved a lot of money'.
 
Thanks for your input but i'm only interested in my original query.

I'll be doing the form 12 myself next year too, no way i'd be paying some accountant when i'm fully capable of doing it myself. Waste of money...."in my opinion"!! :)
 
Rough guidelines below -- but check revenues website for the detail

Step 1 - split the expenditure between
a.Enhancement - New Kitchen / New Bathroom / Garden Sheds etc
b.Capital Expenditure - Furniture & Applianes
c. Expenses - Repairs and maintenance, Insurance, Accountancy fees, etc

a. Not allowable
b. Claim 12.5% per year
c. Pre letting is not allowed - the rest more are less is - see revenue guidlines for the non allowable stuff
 
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