All client monies received are paid into a unique "client account" which is totally independent of the company's own bank accounts. Following receipt of rental payments a monthly statement will be provided: this will show all the transactions on the landlord's account and the balance will be forwarded to the landlord, their representative or a nominated bank account within 3-10 WORKING days.

As from 6th April 1996 both letting agents and overseas landlords are subject to new regulations and responsibilities as a result of the 1995 Finance Act. Tax will continue to be retained unless we receive an exemption certificate from the Inland Revenue.

Under the new act you may apply to the Inland Revenue to receive your UK revenue income with no tax deducted. If the Revenue agree your application they will send you a tax exemption certificate with a copy to ourselves, in order that we may pay the rent to you without tax being deducted.

As from the 1996/1997 tax year landlords themselves will be required to calculate their own tax liability and submit to the Inland Revenue directly as opposed to the agent.

Our revised service will include providing quarterly and annual returns to the Revenue, to retain a process exemption certificate as and when received and to supply an annual tax return if required by the Inland Revenue to such landlords.

Letting your property provides income that is subject to tax. The self-assessment tax system brings extra responsibilities, but also new opportunities to reduce your tax liability.

Are you aware of the allowances and deductions that you can claim (other than any expenses paid on your behalf by The Letting Shop) to help you reduce the amount of tax that you will pay? Will you have to make payments on account? Do you know what records you are required to keep? Under the new self-assessment system there may well be financial penalties if you send information in late or if there are errors.

Here is a checklist of typical expenses you can claim:

- water charges
- ground rent and service charge
- insurance premium for property and contents
- agent's charges
- inventory costs
- maintenance and repairs
- wear and tear allowance where let furnished
- mortgage of loan interest not within MIRAS
- gardening and cleaning
- travel expenses (in limited circumstances)
- sundry expenses often paid by tenant, where in fact you pay them as landlord (e.g. council tax, gas, electricity, telephone, TV license)

Some of these expenses will be met through The Letting Shop as your letting agent, but you need to keep a record of all other expenses so a proper claim can be made and you do not miss any opportunities to reduce your tax bill.

We at The Letting Shop liaise with BERNARD ATKINS (Chartered Accountants) on tax and accounts matters to provide the best possible service to our Landlords. They can provide a comprehensive service, which can take away any tax worries that you might have. The costs are fully deductible in arriving at your taxable letting income. You can minimise your tax bill and take away the burden of preparing your Tax Return by calling them on 0117 977 7431 for an initial discussion with no obligation. Additionally, the situation for previous tax years can be discussed.