11 Jul Why Hire Services of Landlord Accountants?
Individuals and companies who own properties across the UK can benefit from hiring specialized property accountants. There are many reasons why housing associations, developers, letting agents, and property owners should hire landlord accountants.
Seeking the advice of property accountants will help protect against non-compliance with tax rules. This is the case whether you have one or multiple properties for rental or other purposes. Hiring the services of specialist accountants will help navigate through the complex taxation rules in the UK.
5 Reasons Why Landlord Should Hire Accountants
Here are five ways you can benefit from hiring the services of landlord accountants.
1. Keeping Rental Accounts in Order
You can know about the success of your rental property business only when all the rental accounts are in order. It’s difficult to keep track of repairs, maintenance, paint, and other property-related expenses. You need to have an accurate view of what’s coming in and out of the rental business. Experienced landlord accountants will keep a complete record of property-related accounting information, and turn them into meaningful rental reports.
2. Capital Gains Planning
If you intend to sell your property that is not the permanent place of residence, it will be subject to capital gains tax. You have to pay a share of the proceeds from the sale of the property to the government. An experienced property accountant will help you plan for such a situation so that you incur maximum tax savings.
3. Know about Accurate Picture of Your Business
Property accountants use enterprise-level accounting software to have advanced features. This is the value-added service you get from hiring the services of property accountants. You don’t have to buy accounting software to record and manage property-related financial information.
The accountants using specialist software will be able to give you an accurate picture of your rental business. In this way, you can know whether your rental business is running at a profit or loss. Also, you will know whether you are spending too much on renovations or charging enough rent. In short, choosing a landlord accountant will help you learn about the financial health of your business.
4. Non-resident Landlords
Non-resident landlords (NRL) who own UK properties but remain overseas for more than six months in a year can also benefit from hiring professional accountants. The rules regarding NRL landlords have been changed recently. Now all NRL landlords are required to fill a UK tax return in order to calculate the tax liability and deduct tax at source.
In addition, the letting agent or the tenant needs to conform to the NRL scheme. They need to deduct the basic tax rate from rental income before passing it on to you. In case, a non-resident landlord doesn’t have a letting agent, and the rent is more than £100 per week, the tenants need to deduct tax before the rent payment.
A landlord accountant will help the non-resident property owner know how to save on taxes. For instance, NRL can apply to get an exemption of their property being deducted at source. But this needs working out with the specialist tax accountant.
5. Save on Taxes
Another reason why landlords can benefit from hiring the services of specialist property accountants is to save on taxes. You have to pay taxes when you are letting or selling a property. By applying experienced knowledge, your accountant will be able to devise a strategy that is customized to your situation and should allow you to reduce the tax bill.
Hiring a property specialist accountant can ease the task of managing properties. Property accountants can analyze financial accounts and provide valuable advice to save on taxes. You will find the services of a landlord accountant particularly helpful if you are facing a complex financial situation, own a rental property, or live oversees.
While it may seem counterintuitive, hiring a landlord accountant will allow you to save money in addition to time and hassles involved in managing properties.