Deducible accountant fee

According to HMRC website, fee for Let Property Campaign is deducible, and I cannot see any conditions of not being able to claim the whole amount. However, my accountant did not place the whole fee and reduced it by not adding 20% VAT I pay to him. The reason he says is he had to work out my employment fee. What he had to do was I sent him P60 and he work out tax rate. This is a necessary to calculate how much tax I have to pay. However, he says this part is not tax deducible. I feel it is wrong, but is this correct and part of accountant fee cannot be claimed? I was told that this is the case with Self Assessment too. So for example, if I pay an accountant £850 + VAT=£1020, just to work out rate of tax for Let Property Campaign, is my deducible fee is reduced to £850?

Hi,
We would advise you that any income received from letting out a residential property is VAT exempt which means that you cannot charge VAT on any rents.
The other side of this is that you cannot claim back any VAT paid in respect of the rental property expenses, repairs and accountants fees etc as a business expense.
In your example you could only claim the £850 that you paid to an accountant.
Thank you.

There appears to be a misunderstanding here: Your accountant is trying to tell you that you cannot claim the part of his fee that relates to working out the tax on your employment, which is minimal as it’s already on your P60 (so effectively he’s just checking the tax is correct). You can however claim the full amount (including the VAT) on the fees for the Let Property Campaign. Example: Fee for personal tax return - £100 + VAT Fee for LPC - £750 + VAT Accountant’s fees claim on Return - £900 The £120 is not allowable.