Your responsibilities as a landlord

As a landlord, whether you are renting out a property individually or as a limited company, you have financial and administrative responsibilities. Failing to fulfil these responsibilities can result in financial penalties and investigations for tax evasion from HMRC.

Hence, it is important to keep track of your obligations, including registering for self-assessment, submitting accounts and tax returns together, and declaring your earnings in an annual tax return.

However, managing your financial responsibilities as a landlord can be quite a challenge, especially with multiple properties to manage and tenants to maintain relationships with.

To help ease this burden, many landlords, and property investors should consider using the services of a specialist property accountant.

What is the most tax efficient ownership structure for buy to let properties?

We understand the importance of structuring your property activity effectively in order to align with your current income position and future financial goals. Our experts will thoroughly analyze your situation, considering factors such as your income sources, expenses, and long-term objectives.

With this comprehensive understanding, we will provide you with tailored advice on how to optimise your property investments. Rest assured that our team is committed to guiding you towards making informed decisions that will enhance your financial success in the property market.

• Sole Personal Ownership
• Joint Tenants in Common
• Partnership
• Limited Liability Partnership
• Limited Company
• Pension Fund Trust

How does stamp duty affect buy-to-let properties?

Stamp Duty Land Tax (SDLT) is a tax that must be paid on property purchases over a certain threshold. If a property is bought for less than this threshold, SDLT does not apply. The current thresholds for SDLT depend on the type of property being purchased.

• For residential properties, the threshold is £250,000.
• First-time buyers purchasing a residential property for £625,000 or less have a higher threshold of £425,000.
• For non-residential land and properties, the threshold is £150,000.

It is worth keeping in mind that tax rates can be revised, and seeking professional advice is always recommended to ensure you fully comprehend your specific tax responsibilities.

How does income tax affect buy-to-let properties?

Landlords are required to pay income tax on rental income and declare it on their annual tax return. Changes to tax relief for landlords mean that they can no longer deduct 100% of mortgage interest and other allowable costs from their gross rental income. Instead, they receive a 20% reduction in tax liability and are required to declare all other expenses in their income and claim back a 20% credit.

This could lead to landlords facing significantly increased costs and potentially being in a higher tax bracket. Seeking professional advice on landlord tax, from an accountant is recommended to understand the impact on their financial position.

How can we help you?

We can provide you with a range of professional financial services and expertise to help you achieve a rewarding return on investment. This is how we can help:

• We can help prepare accurate rental accounts: We ensure that your financial records are accurate and up-to-date.
• Advice on maximising tax efficiencies by reviewing expenditure: We can review your expenditure and provide advice on how to maximise tax efficiencies, helping you to reduce your final tax bill.
• Assistance with tax return preparation and compliance: We ensure that you meet all of your tax obligations.
• Provide advice on minimising capital gains tax: We can provide advice on capital gains tax, helping you to minimise your tax liabilities when you sell your property.
• Advising on available landlord-specific reliefs: We ensure that you take advantage of all the tax breaks that are available.
• Support with Making Tax Digital compliance: We help you to comply with the government’s Making Tax Digital initiative.
• Advice on improving profit levels: We help you maximise your return on investment.
• Guidance on tax-efficient business structures: We can provide advice on the most tax-efficient way to structure your buy-to-let business.

Why choose us

Are you a landlord feeling overwhelmed by the complexity of managing your property portfolio and keeping up with tax regulations?

We offer expert rental property accountancy services that can help you navigate these challenges with ease.

Our friendly and professional team of Property Accountants is committed to taking the burden council tax off your shoulders by providing comprehensive tax advice and support.

We will help you identify opportunities to maximise tax efficiencies and minimise liabilities, so you can continue to grow and prosper your buy-to-let business.

What sets us apart is our in-depth knowledge of various acquisition methods and structures, which we use to help you expand your property portfolio while ensuring compliance with regulatory requirements.

We offer customised solutions that meet your unique needs and goals, and work closely with landlords of all types.

We provide a level of accountancy service that surpasses the basics, giving you a clear view of the bigger picture when it comes to buy to let accountant managing your property investments.

Let us guide you through the complexities of tax regulations and rental accounts, freeing you up to focus on growing your buy-to-let business.