Guideanna (and oldnick),
Let's just clarify the position:
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?
The OP submitted his/her 2010 income tax return without really knowing what he/she was actually submitting.
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
The OP provides further information regarding his/her 2010 capital allowances claim.
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.
A couple of posters point out that it's likely that the OP has incorrectly claimed capital allowances in relation to certain items. In other words, the OP is now aware that there's an issue with his/her 2010 income tax return.
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?
The OP displays further ignorance of the relevant rules.
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.
A poster points out the benefit of using a tax advisor in cases such as this.
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.
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.
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"!!
The OP tells us all that accountants are a waste of money.
OP, just do up a list and see what revenue say. If they disagree with something they will come back to you. You may have incorrectly claimed something and you wouldn't be the first, but you didn't do so deliverately and revenue are not always the enemy so just supply what they want and see what they say. .
The OP didn't initially do it deliberately, but he/she is now aware that there's an issue and has done nothing to regularise the position.
Just to come back to all you so helpful posters. Rang revenue to check they received my letter with the breakdown of CA claim. My application is now being processed and they said no further information will be required at this time.
IF they do require any further information i will obviously be more than happy to supply this....without any assistance from an accountant unless i see their service fit to attain.
Thanks so much for all the helpful posts.
And to those judgemental name callers telling me i'm "feeling around in the dark" and "ridiculous"....well....that may be so, but for the moment i've answered what revenue required of me without the paid help of anyone so i think i did ok for a first timer!
The OP has not advised Revenue that there's an issue with his/her 2010 income tax return. It's a self assessment system. The onus is not on Revenue to identify errors in a taxpayer's return.
gekko in what way is my form 12 "dodgy"? I was asked to supply additional information, if revenue decide to audit me i have nothing to hide. if i made a mistake on the form listing expenses as capital allowances then i will put my hands up but i don't think this is the case and thus far revenue have not requested anything more from me.
Your telling me i've an obligation to correct my form but as far as i am aware i have everything in line so you telling me i'm dishonest is as well as ignorant and stubborn is way out of line.
In my opinion (as i've already said) to pay an accountant to fill in a form i'm capable of doing myself is A WASTE OF MY MONEY!!!! If i felt i wasn't able to do it i would have hired someone. You have got your knickers in a knot over this point as you keep coming back to it but there are no laws against filing my own tax returns and so much to your delight i'm sure i will stand by my decision.
No problems so far, revenue are well within their rights to request additional information and also well within their rights to request further info or even audit my accounts. As i said i have nothing to hide.
Won't be replying again as i don't see the point when you've clearly made up your mind about me.....so here is the last word....enjoy it!!
guideanna -I entirely agree that calling you dishonest was way out of line. I think it breaches the guidelines of this forum and certainly breaches normal rules of etiquette.
However, on a financial forum it is likely that there'd be a few accountants. Perhaps it may have been more diplomatic to say something like " i'm unsure of the value of an accountant in this instance" , rather than "waste of time..".
But, even so, descriptions like dodgy and dishonest were OTT.
You both appear to be missing the point that the onus is on the OP to point out to Revenue that there's an issue with his/her capital allowances claim. Ours is a self assessment system. The OP is morally and legally obliged to submit his/her return correctly. If the OP now knows that the return is incorrect and does not amend the return, that is dishonest. It is utterly dishonest. And it's bizarre to be claiming that using an accountant is a waste of money while simultaneously making a complete dog's dinner of your own return.