Call: 01625 578030

  • You talk, we listen

  • Tax planning for your business

  • We care because you care

  • Business accounts are our passion

  • Facebook Griffin Accountants
  • Twitter Griffin Accountants
  • Email this page to a friend

We use Kashflow do you?

  • Griffin Accountants deal with my property rental accounts and personal tax. Their fees are very competitive, the service is excellent – real value for money.

    Dr David Teale
    Teale Property Rental

  • Griffin Accountants provide assistance for both my business and personal tax and accountancy needs. They are large enough to have the specialist knowledge I require, yet still small enough to provide a personal service.

    Robert Milne
    Creative Director

  • I have received a first class service. Any queries have been dealt with promptly on a business and personal level. Everyone is polite and profession.

    A Noble
    Noble Construction

  • I have used Griffin Accountants for a few years. My first words of advice to anyone starting a business are to get a good accountant and accounts and tax services are one. Straightforward, quick with good advice, accurate, they do what they say on the tin.

    Jason Cooper
    Cooper Landscapes

  • Griffin Accountants are of great help to us with the use of Kashflow for our book keeping and VAT submissions. They regularly prompt us when the monthly figures are due and always help us with client queries and any complicated invoices and calculations.

    Harry Edwards
    Managing Director
    Focus IT Managed Services Ltd

January questions and answers

Newsletter issue - January 2018.

Q. I have recently bought a residential property to rent out. To enable me to purchase this property I took out a mortgage on my own home and I used the money to buy the rental property. Can I claim tax relief for mortgage interest against my rental income?

A. You should be aware that the rules for residential landlords claiming tax relief on interest paid changed from April 2017. The answer to your question is, yes, you can offset the interest you are paying on this mortgage against the rental income you are receiving from the purchased property. The HMRC Business Income Manual (at BIM45685) confirms that ‘the security for borrowed funds does not determine the use of those funds'.

Q. I am an IT consultant and I provide my services via my limited company, which operates outside the IR35 rules. I started working on my current contract just over two years ago - although when I started, I did not know that it would last this long. Do the temporary work place rules on allowable expenses apply in this situation?

A. There are a number of circumstances where, even though an employee attends a workplace to perform a task of limited duration or for some other temporary purpose, it will still be treated as a permanent workplace. This will be the case where the 24-month or fixed term appointment rules apply or where the workplace is a depot or base.

The 24-month rule prevents a workplace being a temporary workplace where an employee attends it in the course of a period of continuous work which lasts, or is likely to last, more than 24 months.

HMRC's guidance on employee travel (Booklet 490) states (at section 3.21):

‘Where it is expected that the employee will attend a workplace to perform a task of limited duration or for some other temporary purpose for a period of less than 24 months, the workplace will be a temporary workplace from the outset.

However, if at a later date circumstances change and the employee is required to attend the workplace for a period that extends beyond 24 months, it will cease being a temporary workplace from the date that the expectation changed.'

Q. How is an estate valued for inheritance tax purposes?

A. Inheritance tax on death will be calculated on the net value of the estate. The net value of an estate is effectively assets less liabilities.

Examples of assets include, land and property, shares and securities, savings, jewellery, paintings and antiques. Assets within an estate on death will also include any assets gifted within 7 years of death.

Liabilities include, credit card debts, loans, overpayments of pensions, outstanding utility bills. The estate will also be reduced by reasonable funeral costs and any income tax or capital gains tax.

An estate will take into account all assets and liabilities of a person. In order for the debt or liability to be an allowable deduction from the estate, it must be owed by the deceased at the date of death. There must be a genuine commercial reason for the liability and if included within the estate, it must actually be a liability that is repaid from the estate.

Liabilities will be paid either out of the estates available cash or can be via the sale of an asset or by the personal representatives taking out a loan.

Latest tax tips and news