Regardless of how many rental properties you own, you might find it daunting to deal with taxes and accounting when you are too busy managing them. You can avoid the hassle of facing the HMRC and keeping records by outsourcing your accounting. Accountants for landlords can benefit you in these crucial ways:
- Save tax on rental income – They will take into account every possible expense you may have incurred, including travel, stationery and utilities between your properties. Deductible expenses are covered too, such as council tax, ground rent and letting agents’ fees.
- Become tax efficient – With the help of accountants for landlords, you can experience maximum deduction of your expenses, especially if you are joint tenants with a partner.
- Ensure tax efficient ownership for buy-to-let property – Changes to the tax structure of buy to let properties’ rental income were announced in the 2015 summer budget. This made properties more attractive to own via incorporation. However, you can still get good returns on a buy to let investment. Accountants can give you advice on the most efficient means to own a property.
- LESA – Accountants for landlords can help you file the claim for the Landlord’s Energy Saving Allowance. It lets you claim against the money spent on energy efficiency measures like loft insulation, draught proofing, cavity wall insulation, floor insulation, hot water insulation and solid wall insulation.
- Tax returns – Even landlords must file their tax returns, especially if rental income exceeds 2,500 quid. Accountants can help you with this.
Accountants for landlords can also serve as your agent and represent your case to the HMRC. They can argue on your behalf if the wrong tax code was applied or if there are any errors in HMRC’s calculations. If you failed to declare past rental profits, they can help you disclose your taxable income on better terms. They have experience in negotiating favourable terms for landlords.