Landlord Accountant

Landlord Accountant

Accounting Challenges for Landlords

As a landlord, you are probably facing multiple challenges due to the higher interest rate, tougher government regulation on landlords in regard to tenant’s rights, and restrictions on claiming on mortgage interest expenses. Furthermore, the capital gain tax cut in Autumn Budget 2023 has made it very painful for landlords to exit the market. Higher tax rates, higher interest rate, and tougher regulations are making the property business less profitable. As the UK government is targeting landlords and property investors by increasing taxes on business profits and capital gains, therefore. Hiring a property accountant can help you to save time and maximise your wealth.  

Importance of Accountants for Landlords

If you are planning to purchase a buy-to-let property or those who already have a property portfolio might benefit greatly from hiring a specialised property accountant. A specialised property accountant will be familiar with HMRC and Companies House reporting procedures, the best approach to manage accounts, and property taxes. A landlord accountant will not just prepare your accounts and file it but also help you to maximise your wealth by professional tax planning and liaise with the mortgage advisors to get the best rates.


Being a director of a limited business means that you have to be updated on all legal requirements. However, landlords that have access to up-to-date accounts can use this information to their advantage. This information can help landlords understand if they are running at a profit or a loss. In addition to this, landlords can keep track of any late payments and ensure their receipts and bills are always in order. It can be difficult for landlords with a large portfolio to keep track of all outgoings and income. This makes the assistance of property accountants even more helpful and time-saving.


Having an accountant for landlords are useful as they can claim more allowable expenses. Some landlords may not be aware of the expenses they can claim. A specialist property accountant will guide a landlord to ensure all expenses that can be claimed are being claimed. 


Tax Return for Landlords

Whether if you own single buy to let property or you have a property portfolio, you are required to file your self-assessment tax return for your rental income. A property expert accountant can help you with the tax planning to minimise your tax bill and maximise your wealth. A tax accountant can help you to transfer your property to a limited company or assess various tax saving option options.


Tax Return accountant for landord

Specially Purpose Vehicle Company

SPV limited company is one of the most popular options for landlords due to the higher interest rate and restriction on claiming the interest expenses if you are a sole trader. SPV companies are the same as any other limited company. However, in the mortgage world, a Special Purpose Vehicle limited company is a company that is set up just to hold property and do nothing else. For example, XYX Property Ltd is formed to purchase a flat in London. You cannot use this company to trade with other businesses as it will be restricted by mortgage lenders. You can hold multiple properties under one SPV to rent out each month.


The key benefits of SVP company are that it boosts your retirement income, and expands your property portfolio as there is no income tax due on the retained profit giving you more capital to re-invest.



Setting Up Holding Company

A holding company is a company created to buy and own shares of other companies which then controls it. It owns controlling interests in other companies.

The benefits of holding companies are that it is easy to raise capital, helps you expand into new markets and can defer taxes on profits. It also minimises the risk/asset protection as the holding company structure allows better asset management, better distribution of assets and efficient sale of the asset. It also helps with loans, borrowings and business growth.


Capital Gain Tax Planning for Landlords

If you are a landlord and you have sold a residential property; you are required to file your CGT return within 60 days to avoid any penalty. A property tax accountant can help you to save money by efficient capital gain tax planning and capital gain tax return accounting.   

Capital gains tax (CGT) is payable when you sell an asset that has increased in value since you bought it. The rate varies based on several factors, such as your income and size of gain. The rate of CGT that you will pay will depend on your income. You can use capital gain tax calculator to estimate your capital gain tax bill.


There are number of ways of reducing CGT. You can reduce your capital gains tax by using losses to reduce your gain. Transfers between spouses and civil partners are exempt from CGT, which means assets can be transferred from one partner to the other to use each person’s annual CGT exemption. This effectively doubles the CGT exemption for married couples and civil partners to £24,600. Making a pension contribution from net relevant earnings could help you save on CGT because it effectively increases the upper limit of your income tax band. 

At Tax Care We Can File Your Capital Gain Tax Return at a Fixed of £300 Only.

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