Do you want a steady monthly income and to be your own boss? If yes, becoming a landlord could be the right thing you can do! You may be surprised, but more than 2.65 million people are landlords in the United Kingdom. However, it can be very challenging, especially if you have multiple properties on rent. Some people want to start their journey as a landlord but are unsure about making a property investment. So, today many landlords are looking for solutions and hiring skilled accountants, but do they really need an accountant? Let’s find out.
Expert financial advice
Even if rental income is not your primary source of income, purchasing a property is a massive investment and should be done with a lot of caution. Many people remortgage their homes to have funds for another property. So, it is always wise to seek financial advice from professionals who know the best and can help you in this endeavour. An accountant can help you vastly because of his vast knowledge of taxation rules. Remember, if you purchase a buy-to-let property, you must pay the Capital Gains Tax (CGT) on your profits if it is not your primary residence. An accountant can definitely help you to plan ahead in such a case.
Compliance with legislation changes
Do you know about the latest Renting Homes Act? Well, the legislation rules are ever-changing, and it is tough to track all these changes. However, an accountant is always well aware of these changes and can figure out ways they can affect you as a landlord. So, you don’t have to spend your precious time or energy on extensive research about all these, and you can have compliance effortlessly.
Setting up the limited company
Many landlords are now keen to set up a limited company to save tax on their property income. An accountant can help in setting up the same. He knows the importance of setting up a separate bank account for the same and the things to be considered before opening a limited company bank account. All these things are a bit complicated and stressful. You will be relieved of all the stress with the help of an accountant.
Know the allowable expenses
Do you know that you can deduct the allowable expenses? This will reduce your tax liabilities, but could you remember all these expenses? Certainly not! However, an accountant can tell you that these are the maintenance and repair costs, insurance premiums, agent fees, advertising costs, and so on. So, he can immensely help you to calculate your correct tax liability.
Prepare self-assessment tax returns
It does not matter whether you are running your rental business under a limited company or in your personal name; you need to perform self-assessment tax return submission on time to avoid penalties. However, preparing the self-assessment tax return is tricky, and an accountant can do the same effortlessly. They keep a tab on submission deadlines and make sure to submit your self-assessment tax return accurately.
Plan for the future
One of the reasons that encourage landlords to hire an accountant is that he can help them consult any business decision. An accountant has the expertise to advise on whether his client has a strong cash flow to opt for a property renovation or a new property purchase. He also keeps track of all income and expenses using the latest accounting tools, which eventually helps to expand the property portfolio.
In short, landlords must hire an accountant. At CoreAdviz, we have a team of skilled accountants with plenty of experience in landlord accounting. We even offer tailor-made accounting solutions to landlords at an affordable monthly package!