The benefits of cloud software

We live in an age of instant accessibility to almost everything. Amazon delivers same day, we have most information available on internet and the greatest option to both client and accountant is good online software.

We are certified in Quickbooks, Xero, Sage, Free Agent and Receipt Bank.

Tax due on Air BNB & Holiday Let income

A subject of interest to many of our readers will be the rental of property/rooms such as Airbnb and Holiday lets.

Each year we can all have an available tax free personal allowance of £12,500 (Subject to other factors) which we utilise against mainstream income. There are also separate capital gains allowances which are £12,000 for tax year to 05 April 2020 with varying rates liable based on total income after the £12,000 is used and the gain on type of asset, property being at 18% and 28% where other assets are 10% and 20%

In addition to these for clients with earnings from Airbnb this income is not exempt from tax, however if you rent out a room in your main residence, you may qualify for the “rent a room” relief, the amount of relief is currently up to £7,500 or £3,750 if let jointly.

The amount of tax you will be due to pay on Airbnb income will be affected by whether the room you are renting out is in your main residence or not and then subject to rates of tax. If you are letting an Airbnb in a separate property, you will be due to pay the tax on profits just like any other business owners are.

Don’t forget about VAT. If your total income from Airbnb rentals exceeds the VAT threshold (£85,000) then you will need to consider registering for VAT.

Draft legislation from HMRC may be tightening on the rent a room relief. The current level of £7,500 per year will remain, however if you rent your own home, you must be present some or all of the time that it is let out.

Garrison Accountancy are your local leading experts for all areas of property taxes and income, this includes commercial property, buy-to-let properties, hotels and bed & breakfast, residential letting  If you require any support or guidance in relation to this area please contact Garrison Accountancy Tax Manager Brendan Kelly on 01397 600167 or email him at

MTD software

We are glad to announce we have the highest level Quickbooks Advanced Certification which makes us pro advisors.

In conjunction with Receipt Bank, it makes the transition to Making Tax Digital an option for all client no matter their location (broadband connection willing)

The software works in conjunction with all leading online software packages: Quickbooks, Xero, Sage, Free Agent etc… and then exports the digitally captured image into the program.

An option for sole traders is it produces an income and expenditure which is then used for the preparation of the self-assessment tax return.Quickbooks Glasgow

Capital Gains Tax

Capital Gains Tax is a tax on the profit when you sell or dispose of something an ‘asset’ that’s increased in value after the available basic rate allowances and capital gains exemption. You will have to factor in other income you received such as employed earnings. It’s the gain you make that’s taxed, not the amount of money you receive.

This can be residential, commercial Property, assets, investments etc.

The current exempt sum for capital gains tax is £11,700 then the applicable gain over this attracts capital gains tax.

Typically this is then taxed at 18% for residential property and 28%. Other chargeable gains will be liable for 10% and 20% tax. Examples of other chargeable gains are

First rates above are for lower rate taxpayers the second is for higher rates taxpayers. Businesses pay the higher rate of 20% on other chargeable gains and 28% for residential property. Sole traders still can have 10% rate for sole trader or partnership gains applicable for entrepreneur relief

Making Tax Digital

Come 01 April 2019 all clients submitting vat returns will have to complete via online filing software. The process should be simple and we have partner programs with Quickbooks, Xero and Sage with reduced rates for clients. We are offering a deal till 31 March 2019 of £6.99 per month then £12.99 per month. Clients taking up this option after 31 March 2019 will not receive the same discounts and will start from £16.99 per month.

What makes them useful is the connection of the business bank account to the package meaning we can start on vat returns without having to request from client.

The reporting will benefit all clients and it is our intention to recommend clients use it monthly for their sales invoices, for their expenses and we will then provide a Profit and Loss to allow clients to have a monthly view of their business.

Please contact us for further details or for training options for these packages.

Welcome to the new Callan Accountancy website

Thanks for visiting the new Callan Accountancy website. We’ll be posting interesting and helpful information on the News blog so please check back regularly.

If you have any questions about the service we offer or would just like some accountancy related advice please call us on 0345 541 1377 anytime. We deal with businesses all over Scotland and would be delighted to hear from you.