Registering for self assessment and understanding what records you need to keep can be complicated. You can do it yourself online, or we can take care of it for you when you join us as a client. We’ll help you understand what records you need to keep and when it’s time to do your tax return we’ll take care of everything for you.

We can also help you make the decision to set up a Limited Company if and when the time is right, making sure your property investments are structured in the most tax efficient way possible.

We’ll talk you through the records you need to keep and we’ll give you plenty of notice whenever we need any paperwork from you. Exactly what we’ll need varies from client to client, but we’ll try and keep it as simple and hassle-free as possible!

Don’t worry, if you’re moving to us from another accountant we just need you to sign one form and we’ll do the rest. So there’s no need for awkward conversations with your previous accountant and no nasty paperwork.

For many landlords, dealing with finances and meeting HMRC deadlines can be a chore. There are strict penalties in place for getting your record keeping, tax return and accounts wrong, or not submitting them on time. It can also be complicated working out exactly what expenses you can claim and making sure your property investments are as tax efficient as possible. Using an expert property accountant will save you time and could even save you money!

In short…yes! Even if you don’t make any profit on your property income, you must declare it on your annual tax return. If you fail to notify HMRC of your income or disclose it on time you could be liable for a penalty and in extreme cases face prosecution. We can help you register with HMRC and take care of your tax returns for you. Contact us for a free initial consultation today.

HMRC has far reaching powers and powerful computer software which can access a range of databases such as the Land Registry, mortgage information, bank accounts, credit card transactions and other financial information about individuals. They also have the power to call on letting agents for access to their client records. Even if your rental property runs at a loss, you should be declaring it on your tax return. HMRC are becoming increasingly powerful and with more resources at their disposal, they are able to easily identify and target landlords with undeclared rental income or losses.

To make sure your tax affairs are in order and you make the most of the allowances available, seek the advice of an accountant. As well as keeping you compliant, they will be able to help ensure you’re in the most tax efficient position possible so you can keep more of the money you earn from your rental property.

This will depend on your personal situation. On the basis that the property is held in your name only, any net rental income is taxable on you. If the property is owned jointly, any income arising will be split between you and your partner and taxed on you both individually.

The amount of tax you pay will depend on the amount of deductible expenses you claim, which tax band you fall into and what other sources of income you have. You will need to set aside enough funds to cover your tax bill, and you should plan early and seek advice to make sure your affairs are.

Expenses of a revenue nature incurred in relation to letting your property may be deductible from your gross rental income, before arriving at your taxable rental income.

Some examples could include:

• Repairs and maintenance
• Service charges
• Letting agents fees
• Utilities where paid on behalf of the tenant
• Insurance

This is by no means an exhaustive list. Recent changes have led to the abolition of the 10% wear and tear allowance and restriction of landlord tax allowances to the basic rate of tax on financial costs.

The position on the tax treatment of renovation costs prior to letting is also complex and depend on the condition of the property and individual circumstances. Get in touch and we’ll make sure you’re claiming the right expenses.