Let’s just answer one simple question
Yes, you have to declare your income to HMRC, even if you’ve made a loss on your rental property.
If you don’t, you could put yourself at risk of an HMRC inspection and face the possible penalties that come with it. Tax inspections aside, without the right accounting advice, you could be missing out on valuable tax relief. When you have the Beans Accounting team by your side, you can rest easy knowing we have everything in hand.
Why choose Beans Accounting?
Here are just a few reasons why landlords enjoy working with us on managing their accounts:
- Team of staff with experience of working in industry
- Friendly staff who provide a personal service
- All-inclusive pricing with no surprise bills
- Our efficient working processes mean we always have time to talk to you
Call us for a chat and let’s talk about how we can help you set up your business.
- We will agree our prices in advance so there are no hidden surprises
- Monthly payment to spread the cost
- FreeAgent software is included in package
- We provide full support with set up
- Training available tailored to your needs
- Cost of VAT and PAYE registrations included
- We will provide you with a set-up plan so you can be sure that everything has been considered.
- A process design workshop is included to help you work out who does what in your day to day business.
- Your own accountant who is available to answer your questions
- Gets to know your business
- Covers all HMRC investigation fees
- Support and guidance to ensure best outcome
FAQs for Landlords
You may have heard of Section 24 or ‘Tenant Tax’. This is the change in legislation affecting the way you claim tax relief on mortgage interest.The changes will be phased in gradually over 4 years, starting from 5th April 2017. By 2020, you will only be able to claim basic tax relief rate on all rental income. This is making the prospect of being a landlord a lot less attractive, unless you own the property outright.
One way to tackle the challenges that Section 24 brings is to create a limited company for your rental properties. But how do you know if this is right for you? Every case is different, when you talk to us about your property portfolio, we can help you manage the business with an accountancy package that right for you.
You can post your accounts for your rental property retrospectively but the interest will be gathering throughout the time you have left it undeclared so this is not recommended. As with any business, it is important to speak to an Accountant early in the process so that you can make the best tax decisions and keep your income protected.
What our clients say…
"We invested in a property so that we could start building a retirement fund. With all the changes that have happened with the Landlord Tax, we had no idea how to do our tax returns or if it was even worth keeping the property. Without all the help we’ve had from Beans, we’d have probably sold up. We know we’re in good hands with Beans."
Our basic packages at a glance:
We will advise you on the best legal form