Landlord Accountants

Anyone letting property must pay income tax on the difference between rents charged during the tax year, less any allowable expenses and any associated charges. And that means you need to file a tax return, which can be a time-consuming and frustrating task!

Our landlord accountants go beyond simply preparing your Self-assessment tax return. They work with you to develop a proactive tax strategy for your property portfolio. This includes:

• Identifying all available legal deductions and allowances - They'll explore various options like wear and tear allowances, mortgage interest relief, and property management fees to minimise your taxable income and reduce your income tax bill.
• Making the most of a loss - If a rental property generates a loss, you can voluntarily disclose this information and use it to your advantage should the property turn profitable in the future.
• Devising tax-efficient strategies - They'll develop a long-term tax plan considering the entire property ownership cycle, from acquisition to disposal. This can involve strategies like timing property purchases and sales to optimise your tax position across different tax bands.
• Accurately preparing your Self Assessment - They'll ensure your tax returns are complete, accurate, and submitted on time, avoiding potential penalties and HMRC inquiries.

Our property accountants provide meaningful insights into your property portfolio's financial health, with:

• Accurate record-keeping - They'll handle all your financial transactions carefully and ensure your records are organised and accessible.
• Comprehensive financial reporting - They'll generate clear and concise reports that track your income, expenses, profitability, and other key financial metrics. These reports will help you understand your investment's performance at a glance.
• Valuable insights and analysis - They'll analyse your financial data to identify potential cost-saving opportunities, track trends, and provide informed recommendations for improving your investment's performance.

Selling property can be a complex process, especially regarding CGT. Landlord accountants can help you and liaise with our capital gains tax accountants:

• Navigate the complex world of CGT - They'll explain the regulations and calculations involved in calculating your Capital Gains Tax liability.
• Optimise your tax position - They'll explore various strategies to minimise your CGT payment, such as leveraging reliefs and allowances or timing the sale of your property.
• Maximise your profits - By minimising your CGT liability, they'll help you retain a larger portion of your profits from selling a holiday home or second property.

Dealing with SDLT can be complicated, but your Prescient Accounting property specialist can help you handle it smoothly.

• Understanding SDLT - They'll explain the regulations and current SDLT rates applicable to your property purchase. This includes understanding different thresholds and potential reliefs you might be eligible for.
• Efficient SDLT calculation - They'll handle the calculations of your SDLT liability accurately and efficiently, ensuring you pay the correct amount and avoid any unexpected tax burdens.
• Avoiding penalties - They'll guide you through the submission process to ensure you pay tax on time and in full, preventing potential penalties for late payments.

Our landlord accountants can advise you on the most tax-efficient way to structure your property portfolio:

• Exploring different structures - They'll explain the advantages and disadvantages of different ownership structures, such as sole trader, limited company, or joint ownership.
• Considering your specific personal circumstances - They'll consider your individual financial goals, risk tolerance, and tax situation when recommending the most suitable structure for your portfolio.
• Deal with tax efficiently - They'll help you choose a structure that minimises your overall tax liability and optimises your investment returns.

Your dedicated property accountant will ensure you stay financially organised and in control of your property affairs by:

• Effective record-keeping - They'll implement a robust system for recording all your rental income and allowable expenses, ensuring accuracy and easy access to information.
• Efficient cash flow management - They'll help you track your cash flow, identify areas for improvement, and develop strategies to optimise your financial position.
• Compliance with regulations - They'll ensure your rental income and expense management practices comply with relevant regulations, avoiding potential issues with HM Revenue & Customs.

Our dedicated property accountants can ensure you're not missing out on any valuable tax relief and benefits by:

• Identifying available reliefs - They'll explore all the available property tax reliefs you might be eligible for, such as wear and tear allowances for furnished properties, finance costs, or empty property relief.
• Understanding the eligibility criteria - They'll explain the specific requirements for each relief to ensure you meet the criteria and can rightfully claim them.
• Claiming reliefs accurately - They'll assist you in submitting accurate and complete claims for property tax reliefs, further reducing your overall tax liability.

A specialist property accountant can help you navigate the ever-changing legislative landscape for landlords in the UK:

• Staying up-to-date - They'll inform you of the latest HMRC rules and regulations and legal requirements for landlords, including areas like tenant rights, energy efficiency standards, and fire safety regulations.
• Ensuring compliance - They'll guide you on implementing these regulations into your property management practices, ensuring you operate legally and avoid potential penalties or legal issues.
• Providing resources and guidance - They can provide you with useful resources and guidance to understand your legal responsibilities as a landlord and make informed decisions regarding your property portfolio.

By seeking the support of a Prescient Accounting landlord accountant, you can benefit from their comprehensive knowledge and expertise in managing the financial and legal complexities of being a landlord.

Whether you have a single buy-to-let property or a growing portfolio, Prescient Accounting can help you optimise your tax position, maximise rental income, and navigate the complexities of property structuring. They can offer guidance on everything from claiming property tax reliefs to complying with regulations for furnished properties. If you own more than one property, they'll help you select which one to state as your main residence for tax purposes.

If you manage a substantial property portfolio, one of our property accounts can be invaluable in streamlining financial processes, identifying cost-saving opportunities, and gaining deeper financial insights into your investments. This allows you to make informed decisions for continued portfolio growth.

These types of lets have unique tax implications. We can help you understand and claim relevant tax reliefs, such as wear and tear allowances, and ensure you comply with specific regulations for furnished holiday lets.

Individuals who unexpectedly find themselves renting out their property can benefit from expert advice on managing their tax liabilities, staying compliant with regulations, and navigating the complexities of unexpected rental income.

If you receive rental income by letting a room in your own house, you don't have to pay tax if the total rent is less than £7,500 for each tax year. However, if it exceeds this, you will be expected to file a tax return.

Owning property jointly can introduce additional tax considerations. Our specialists will guide you through the specific tax implications and ensure all parties understand their financial obligations.

Owning property through a limited company offers different tax advantages and disadvantages. Your Prescient Accounting property expert will advise you on structuring your company efficiently and ensure you comply with all relevant regulations.

UK landlords are required to pay tax on their rental income, including Income Tax, National Insurance if applicable, and Capital Gains Tax on the sale of rental properties.

Reducing rental income tax in the UK can be achieved by claiming allowable expenses such as maintenance, repairs, and mortgage interest, thus lowering taxable income.

Deductible expenses for UK landlords include mortgage interest, property maintenance and repairs, insurance, agent fees, and utility bills not covered by tenants.

Property depreciation isn’t directly claimable for UK landlords, but you can claim on certain capital expenditures, such as fixtures and fittings, over time.

You can offset a portion of your mortgage interest against rental income in the UK, subject to restrictions from the Section 24 mortgage interest relief cap.

The HMRC offers a £1,000 property income allowance for UK landlords, which can be used to offset rental income if expenses are not being claimed.