Property is a reliable way to invest, as long as your finances are expertly managed. To be successful, you need to hire the right buy to let accountant who is experienced with property investment with up-to-date knowledge of the property finance market.

How to Hire the Right Buy to Let Accountant

Hiring the right buy to let accountant is essential for anyone with rental properties, or seeking to buy soon. Whether you have a portfolio of properties or just starting out on your investment journey and looking for more information, we are here to help. The right buy to let accountant will help you maintain compliance, navigate the world of property taxes and make sure that your property investments are performing at their very best. It’s essential for every landlord to understand property tax. There are a number of taxes associated with property, including stamp duty, capital gains tax, income tax and in some cases inheritance tax, depending on your circumstances. Fortunately Prestige Business Management has expert knowledge of how to demystify this process or manage this entirely on your behalf. Whatever works best for you. No matter your level of knowledge about accounting or what state your records are in, we can perform a forensic investigation and get your figures in order, shining a light on where your investments could be doing better. We offer expert knowledge of property taxes for buy to let landlords and will keep you compliant with HMRC; maintaining your accounts and handling HMRC reporting processes. 

Property Taxes

When you become a landlord, you’re setting up a regular source of income in the form of rental payments. You are required by law to pay the correct taxes on this source of income. Stamp duty land tax (SDLT), capital gains tax and income tax. But they all work differently. SDLT is a one off payment made to the government when you purchase a property. Capital gains tax is charged when you sell an investment property. Whereas income tax is paid upon the regular income you make from renting out the property. 

The amount of income tax you will pay on a buy to let property will depend on your income tax band. If you receive income from a variety of sources you need to bear in mind that each source of income is taxed differently. Additionally the Government  has phased out the amount of mortgage interest relief that can be claimed and instead introduced a landlord tax credit. So you will need to calculate how much tax you will owe very carefully to understand how your income and investment will perform. This is where our expertise comes in. Especially if by adding your net rental income to any other income you will push you over your usual tax threshold and into a new, higher band. We can help you understand these tax calculations and apply methods of achieving great tax efficiency. Income tax on rental properties is collected via self-assessment byu HMRC. Which you can either file yourself, or leave it to your accountant to handle. 

Buy to Let Through a Limited Company 

Some buy to let landlords will find it more tax-efficient to purchase a buy-to-let property in the name of their limited company. This is because the taxes paid on limited company-owned properties differs from those owned by private landlords.This can work out cheaper in certain cases, which is a good reason for a buy to let landlord to consider this option. If you purchase a buy-to-let through a limited company in the UK, you will pay corporation tax on the rental income instead of income tax. You need to be aware of Annual Tax on Enveloped Dwellings (ATED) is an annual tax payable mainly by companies that own UK residential property valued at over £500,000, to ensure property owners are paying stamp duty land tax (SDLT). Plus there are benefits to inheritance tax if you buy to let through a limited company. 

Keeping you Informed 

The perfect buy to let accountant will be proactive and available to answer your questions about your property investments. This will save you both time and money maintaining the best value for money from your property assets. At Prestige Business Management we pride ourselves on our communication and dynamism. We are always ready to answer your questions, over whichever platform you prefer. Our clients email, call or WhatsApp us anytime they need us. Legislation around property investment is regularly changed and updated. This is one of the dangers when you are managing a portfolio of property investments, it can be a lot of work keeping all of your paper work up to date and your tax obligations in check. Fortunately our buy to let accountants are always up to date and ready to tackle any changes that will affect you. We’ll contact you with advance warning of any forthcoming changes, and we will always be ready with the best up to date information, solutions and advice. Most of all we will keep you compliant at all times. This saves you the worry and the hard work of memorising and updating every detail yourself. 

Up to Date Accounts 

It is a legal requirement for your accounts to be kept up to date. However further to this landlords can use this information to their advantage. To help understand if they are running at a profit or a loss and why. This type of insight from the right buy to let accountant will highlight when to adjust rental amounts or reduce maintenance costs to maintain a reliable profit. Additionally we can help buy to let landlords track late payments and ensure that receipts and bills are always up to date and filed correctly. Accurate record-keeping will help landlords maintain compliance with HMRC as well as understanding how well property investments are performing. 

Latest Technology

Prestige Business Management uses convenient and up to date software like Quickbooks. This helps to track financial information quickly and easily. As a landlord you can log in for a health check on your investments at any time. It is also incredibly easy to record the many income and outgoings associated with a portfolio of properties. 

Claim Your Expenses

There are several expenses that landlords can claim against taxable rental income. The expenses must be for the purpose of renting out a property but can cover a broad range of costs. Common types of deductible expenses are utilities like water, gas, electricity and council tax bills. Letting agency fees, insurance and accounting fees. Mortgage interest (now restricted). General maintenance fees and costs of repairs to the property as well as wages for people providing a service, such as cleaner or gardener can also be claimed. We can help you identify and claim all of your associated expenses to ensure that yor are making the most out of your property investment.

Capital Gains Tax

If you are seeking to sell a property, which is not your permanent place of residence, the sale will be subject to Capital Gains Tax. meaning that you will pay a proportion of the property sale to the government. The right buy to let accountant will step in to help plan for this in advance and manage your assets accordingly.

At Prestige Business Management we can help your Business

Prestige Business Management can help you manage your property investments and achieve the best possible tax efficiency on your assets. Call us today on 0203 773 2927.