Potential landlords and those that already have a property portfolio can benefit greatly from hiring a qualified property accountant.
Sound financial information and up-to-date guidance are essential for making profitable investments. Property accountants can be extremely useful in this situation, and for many reasons:
Landlords can benefit from their property accountant‘s breadth of industry specific financial knowledge and counsel, which is one of the most obvious but crucial advantages.
Property taxes, the best manner to keep records, and the ever-changing HMRC reporting requirements are all managed by a qualified property accountant. Having a property accountant on your side – and just an email or phone call way – who can help with questions and concerns is priceless and can save a landlord money, time and effort.
Legislation as it relates to buying, owning and maintaining property in the UK is constantly evolving. A specialist property accountant, like those on the Pearl Lemon Accountants team, will always be up-to-date and prepared to deal with any developments that may affect property owners and landlords. Rather than the client needing to conduct lengthy research into the changes, as your property accountant, we will already be aware of them and able to ensure that you are always compliant.
As a legal necessity, personal and company accounts as they relate to property ownership must be kept up to date. But not just for tax purposes. This data can assist property owners and landlords in determining if they are making a profit or losing money. They may need to minimize maintenance expenditures or change rental levels and this real time information can help ensure they are making the right calls.
Landlords can also keep track of any late payments and ensure that their invoices and bills are always in order. Landlords will gain in the long run from accurate record-keeping because it will give them peace of mind that everything is in order.
Property owners and landlords can deduct a variety of expenses from their taxable rental revenue. However, often, because they are not aware of them, or they are unsure if an expense qualifies, they miss out on these potentially money saving – and money making – opportunities.
The following are all examples of deductible expenses property owners may be able to claim, if they have the accurate and up-to-date financial data to do so:
The preceding list is by no means complete. Working with a property accountant will help ensure you get to claim every penny you are allowed to.
Landlords may be entitled to a variety of tax benefits. A professional property accountant will be able to quickly determine which ones are appropriate for each individual landlord.
For instance, if a landlord wishes to sell a home that is not their primary residence, the transaction will be subject to Capital Gains Tax. This entails paying the government a share of the proceeds from the sale of the property. Property accountants with a lot of experience – like those working with Pearl Lemon Accountants – will be able to help you plan ahead for this situation to minimize the impact on your bottom line while staying within the law as it applies to you.
Once you get into property investment, it’s unlikely that you’ll stop at just a single property. However, to build a successful property investment portfolio, especially in the growing buy to let property market, it takes financial savvy and lots of planning, otherwise you may be left with a string of albatrosses around your neck rather than the revenue generating gems you’ve envisioned.
Making the most of your property investments is all about doing the maths, even before you buy. This can all become very complicated, very quickly and without a very specific knowledge of the property business even a good general accountant can unintentionally steer you in the wrong direction.
If you have a specialist property accountant on your side, you’ll always have that financial expert you need. Looking at several properties and not sure which of them might offer the best financial return in the long term? Call us, we can help you figure it out. Not sure how much rent to charge to cover all your possible expenses and still make a profit? We’ll help you set a figure that will do just that. Unsure if it might be time to set up a formal property company rather than keep investing as an individual? We can help there too (and even help set up the company for you).
Our expertise is one of the biggest reasons. Our property accounting division is made up of seasoned specialists for whom property accounting is all they do. They know their general accounting for sure, but they focus their efforts on serving property owners. This means that they make it their business to remain up-to-the-minute on property regulations and tax changes, and even understand the pitfalls landlords face in terms of delicate financial dealings because they’ve seen it all before.
Our team’s experience has also led to them having a wide network of industry contacts outside the accounting field, and they can, if needed, introduce you to proven property sourcing and property management experts, more great people to have on your side as your property investments grow.
The other big reason to choose Pearl Lemon Accountants as your property accountant is our commitment to personal service. You will never be ‘just another client’ to us. We pride ourselves in being as invested in your success as you are.