A landlord tax expert might help you save money and save the hassle. SK Accountants and Tax Consultants Ltd. had a busy and focused finish to 2021. We have been completing tax returns for hundreds of landlords across the UK. Now, however, we have time to react to all of the last-minute inquiries. We received many questions from rental property owners searching for a professional accountant to help them with their landlord tax returns.
The dialogue is always the same. They have had a bad experience in the last few months. Or they believe that they are paying too much tax and want to know whether we can assist. Here’s what you can anticipate from a knowledgeable and professional property tax accountant.
They are Familiar with the Landlord Tax Returns
When it comes to landlords, there is no one-size-fits-all solution, and your accountant should be aware of this. Some of you might be an “accidental landlord” if you inherited a rental property. If you moved in with your spouse, you may have also ended up with a rental property. You may also be someone who has purchased their apartment and is making a fortune renting it out. Aspects of your setup will be unique to you.
Non-resident landlords, for instance, must file tax returns in a different way than those based in the UK. And inadvertent landlords, particularly new ones, are confused about whether or not they are required to file a landlord tax return.
Most accountants have a few landlord clients, so they are familiar with the essentials. However, buying a home is almost always a long-term investment. Change happens, tax regulations change, your situation changes, you get married, have kids, your salary rises, and you want a retirement plan and a scheme to pass on your hard-earned assets. At every stage of their property ownership journey, SK Accountants and Tax Consultants Ltd. collaborate with landlords. From the initial property purchase through exit or succession planning, we have got you covered. It all starts to add up after a while.
A professional accountant emphasizes taking the time to ask and answer a lot of questions. This usually reveals items our clients did not realize they could claim, as well as preventing them from making claims they may later regret. It is about understanding the difference between repairs and ‘capital upgrades,’ for instance – the former is normally deductible, while the latter is not.
They will Take their Time with the Finer Points
A good property tax accountant will not be scared to work for themselves and will perform the necessary calculations to lower your tax bill. If you operate your real estate agency from a home office for a few days each month; you may be able to deduct a percentage of your domestic expenses as business expenditure.
But, if you just have one or two houses and use a rental agent, HMRC would very certainly refuse any business use of home deductions. It takes some effort and numbers to figure out your claim.
They will Approach You with Suggestions
A landlord accountant does not simply keep track of what is going on; they also give recommendations to help you design your tax strategy. For instance, there may be tax benefits to transferring possession from you to your husband or wife, or vice versa. SK Accountants and Tax Consultants Ltd will always report something like this. We will be happy to assist you in crunching the data to make a conclusion if we notice it.
Accurate and Timely Communication
Your accountant should react to your questions swiftly and in plain English. Sadly, as SK Accountants and Tax Consultants Ltd have learned from clients who have joined us in recent years; this is not always the case. Certainly, this does not relate only to property accountants, but it does assist to understand how landlord tax returns work. Obtaining the information you want from your accountant should not result in an unexpected invoiced cost.