Is It Really Necessary For Landlords To Hire An Accountant?

Regrettably, landlord tax accounting is becoming a more complicated subject. Many landlords, both new and seasoned, are seeking professional aid from landlord accountants, but do they really need it?

In a nutshell, sure!

Investments in buy-to-let properties are subject to their own set of tax restrictions. For many landlords, rental revenue isn't even their major source of income, so being legal and tax efficient can be a time and resource drain. On top of everything else, how do you stay up with accounting best practises and landlord tax updates?

An accountant can help you with everything from tax breaks for landlords to calculating the tax credit on your loan interest. They can also help you with the accounting documents you need to preserve. Whether you're just starting out or have a few properties under your belt, expert landlord accountants like Cruseburke will make sure you're fully compliant and paying the least amount of tax possible.

If you're considering of becoming a landlord for the first time, here's what you should know.

Did you realise that even if you don't make a profit as a landlord, you still have to report your rental income?

There are numerous facets of landlord accounting that you should be aware of before getting started, so we recommend speaking with an accountant first to get started on the right foot.

If you haven't yet purchased the property, you can receive assistance to make sure you're saving money on taxes. A landlord accountant can assist you in determining how much you can realistically pay and the best ways to choose and manage your finances based on your unique circumstances.

They can also show you how to keep adequate accounting records for HMRC and ensure that your self-assessment tax returns are completed correctly.

If you already have one or more buy-to-let properties under your management...

The ‘Let Property Drive,' which relies on individuals voluntarily stepping forward and putting things right, is HMRC's campaign to reclaim millions of pounds in unpaid landlord tax. What is the issue? The majority of landlords are completely unaware that they are not in compliance.

Consult a landlord accountant to make sure you're being as tax effective as possible while remaining compliant. Everything from tax reports and bookkeeping to regulatory and tax changes can be handled by them. You can get back to doing what you do best now that you've hired an accountant to handle your finances and taxes.

If you own an apartment in a block of flats...

Consider forming a flat management company, which is a handy way for residents of a block of flats to manage common expenses including insurance, roof repairs, and community cleaning.

Each flat owner will have one share in the flat management firm in a typical organisation. Residents will pick directors to handle the company's procedures, and each flat owner will be obliged to pay a yearly service charge.

These businesses, like any other, are controlled by the Companies Act and are required to prepare and file yearly financial statements. We presently represent roughly 100 of these businesses.

Your accountant will be able to assist you with the initial setup as well as provide the following ongoing services:

• Annual accounts are filed with Companies House.
• HMRC submission of corporate tax returns
• Returns on an annual basis
• Managing service fee accounts with renters and stakeholders.
• Tax and legislation advice that is proactive

Please contact us.

Working with a skilled accountant can help you whether you're a professional landlord or merely rent out a house as a side business.

Our landlord accountants and flat management accountants are experts in this field and can provide a full solution to keep you compliant and tax effective. We provide a transparent, honest service with no hidden costs — just what you'd expect from a small but highly experienced company.