Hiring an expert property accountant in London can bring huge benefits to potential landlords and those who already have a property portfolio.
To make investing a success, good financial information and up-to-date advice is vital. Property accountants can be extremely helpful in this situation. Here we discuss 6 reasons why landlords should hire an expert property tax accountant in London.
Benefit from their expertise
One of the most obvious and critical advantages is that landlords have access to their accountants' wealth of knowledge and advice.
An experienced property accountant in London will be familiar with property taxes, the best way to keep accounts and HMRC reporting procedures. A property accountant that can answer queries is invaluable and can help a landlord save money and time.
Be aware of legislative changes
The tax legislation landscape changes regularly as HMRC combat to disincentive property investment. An expert property accountant, on the other hand, will always be up to date and prepared to deal with any changes affecting property landlords. Instead of the landlord doing extensive research on the changes themselves, their accountants in London would do this and be able to ensure that landlords are complying with the latest rules and regulations.
Always keep accounts up to date
It is best practice to keep property accounts. However, homeowners who have access to up-to-date reports can use this information to their advantage. This information can help landlords understand whether they are operating at a profit or loss. They may need to adjust rental amounts or reduce maintenance costs. In addition, landlords can keep track of any late payments and ensure that their receipts and bills are always in order. Keeping accurate records will benefit landlords in the long run and provide peace of mind that everything is in order.
Using software like Xero or Sage, getting up-to-date financial information has never been easier. Landlords don't need to wait until the end of the year to understand the financial health of their business truly.
It can be difficult for landlords with large portfolios to keep track of all outgoing and income. This makes the assistance of property tax accountants in London even more helpful and time-saving.
Help with claiming expenses
There are a number of expenses that can be claimed by landlords against taxable rental income. The expenses incurred will be either "revenue" or "capital". The tax rules for both are entirely different.
Common types of deductible expenses include:
● Water, gas, electricity, and council tax bills
● Pay agency fee
● General maintenance and repair of the property
● Mortgage interest (now restricted)
● Costs incurred to service the property, such as a cleaner or gardener
● Accountants' Fees
Some landlords may be aware of all these expenses they can claim; some may not be aware. An expert property accountant will guide a landlord to ensure that all expenses that can be claimed are being claimed.
Help landlords save taxes
Landlords may be entitled to a variety of tax benefits. Expert tax accountants in London would be able to easily figure out which one is best for the individual landlord.
For example, if at any time a landlord wants to sell a property that was once their main residence, the capital gains tax bill may be significantly reduced. Experienced accountants will be able to help you plan in advance for this situation.
Can help you plan for the future
Finally, having access to an expert to make a business decision is a huge benefit for landlords who hire a property accountant. Property accountants help business owners and their companies.
Landlords will be able to plan for the future with the help of tax accountants London who can provide up-to-date financial information about their business.
For example, although landlords may have purchased a property for the sole purpose of renting, there may be a time when they wish to sell the property. An expert property accountant can assist the business owner in preparing for such eventualities and provide advice on the best solutions.
A landlord may opt to purchase additional properties. If so, an expert property accountant will guide them through the process, create a tax efficient structure and help them understand whether they are in a suitable financial position, their budget, and more.
Working with an expert property accountant has numerous advantages, as demonstrated by the list above. In addition, tax law changes regularly and often come with traps and pitfalls. Landlords who invest in buy-to-let properties are subject to specific tax laws. A property accountant who is well-versed in the field will be able to assist you greatly. A property accountant will also ensure that landlords are tax compliant and help them run their portfolios as financially efficient as possible.