Property Investment Landlords
Practice
Property Investment & Landlords
Whether you’re a professional landlord or you only rent out a property as a side business, you might benefit from speaking to our team of landlord accountants that specialise in providing business and tax advice for landlords.
1. Making Tax Digital (MTD) for Landlords
Making Tax Digital for Income Tax Self Assessment is starting as of April 2024. For landlords earning over £10,000 from rental income, or a combination of sole trader and rental income, this will mean the following:
Digital Record Keeping
Software must be used to keep accounting records relating to the landlord income that you declare as income tax. Data from invoices that you send or receive must be stored digitally. PKPI.UK work with several approved cloud bookkeeping software so there is a suitable service for all businesses.
Updates and Reports
You will need to make quarterly updates to HMRC. Depending on the software you use, this will likely be quite simple but will need much more maintenance than what is currently required. If your rental income is £10,000 or below, then you’ll continue using Self Assessment.
FAQs
1.What is property accounting?
Property accounting refers to the accounting of private, commercial and industrial real estate sales, rentals and properties. It helps property renters and investors get their financial reporting organised, so they can identify the profits and losses associated with their individual properties.
2.Why do I need a property accountant?
If you’re a landlord or someone who has a portfolio of properties, hiring an accountant that knows about property accounting is beneficial. Property accountants stay up to date with any legislation changes and help landlords and property investors to get the most out of their investment, as well as keeping their financial reports in check. There are several expenses you can claim based on your situation, saving you both time and money.
3.What is Section 24, and how does it affect property investors?
Section 24 impacts landlords’ ability to offset mortgage interest against rental income. Our team crafts tailored strategies to mitigate its impact.
4.How can I transition my properties into a limited company for optimal tax efficiency.
Navigating the shift to a limited company structure requires meticulous planning and execution. Our expert advisors provide detailed steps for a seamless and tax-efficient transition.
