Regardless of the number of rental properties you own, being a landlord could mean having a lot of responsibilities to fulfil. In some cases, you might overlook your accounting, bookkeeping, and tax obligations until the last minute. You can avoid that hassle by hiring reputable accountants for landlords. With their help, you can focus on your core tasks and leave record-keeping to specialised accountants. They can also reduce your chances of getting noticed by the HMRC down the line.
Reduce your taxes on rental income
Accountants for landlords can find ways to legally reduce your expenses by looking into all the possible costs you may be incurring, such as travelling between your properties, stationery, and phone calls. You may not know it, but your deductible expenses could include maintenance and repairs, ground rent and service charges, accountants’ and letting agents’ fees, council tax, and interest element in mortgage payments.
If you own a property with a partner as joint tenants and an income gap exists between you, additional rental income may be allocated to the one with lower income to avoid a higher rate tax band. That way, a professional accountant can maximise the deduction of your expenses.
Stay up-to-date with tax laws
In 2015, the summer budget revealed significant changes on the tax structure of the rental income from properties that are buy-to-let. Accountants for landlords may suggest owning such a property by means of incorporation. That way, you still have a way to earn good returns on buy-to-let investments. They will advise you on tax-efficient means to own that property and suggest the best ownership structure for your situation, such as joint ownership as joint tenants, individual ownership, SIPP, LLP, and limited company.
Get to know LESA
Accountants for landlords can assist you in claims related to the Landlord’s Energy Saving Allowance. That way, you could claim against the money you are spending on energy efficiency measures, such as insulation for the solid wall, cavity wall, loft, flooring, and hot water system, and draught-proofing.