This is a great question that was asked this week. Before it can be answered we need to separate investors from traders. This is a huge topic but loosely, for property, Investors generate their income from rent. Traders generate their income from flipping and developing for sale. Let’s deal with investors in the first instance […]
Category Archives: Bills
I’ve been helping a client with some capital gains calculations. They provided a breakdown of their property costs from their accountant and at first I was pretty impressed that they’d actually kept the details. On inspection though it became clear that the list of expenditure, kept solely for the purposes of working out the capital […]
No. But also yes. The tax return basically lumps everything in to relative few boxes with whole loads of things combined in to boxes together. Box 24 on the property page for instance is the total of “Rent, rates, insurances and ground rents”. That covers a lot and HMRC only need to have a single figure. […]
HMRC are trying to do something huge. They want everyone with self employed income and property income to report their earnings quarterly. Considering the difficulties of collecting the information annually this is an interesting and very ambitious plan. They recently updated their guidance on who can do what. Three-line accounts If your turnover (income before […]
The tax treatment of Furnished Holiday lets (or SAs as you might know them) is changing and from 6th April 2025 they are going to be treated much like any other residential letting. So you will lose so nice tax advantages. You get to keep the VAT charges on the rents however. The ending of […]
Once your portfolio grows a little you will at some point make a decision to seek out help. Many start with a managing agent, some will get a regular gardener or cleaner and others will take on help with their bookkeeping or other works. It won’t surprise you that tax law has over the years […]
For a long time now the profits and losses of rental have been calculated in the same was as those from a business or trade. In fact renting of property is classed as a rental business. Not to be confused in any way with a trade (sparky, hairdresser, solicitors etc are a trade). HMRC legislation […]
It’s not always obvious that even one company is a good thing but for those where it is the next question is often how many? In no particular order think about the following: – lenders sometimes insist that a lender is in a company on its own to protect their risk – you should do risky things […]
Whatever your belief about Christmas a good proportion of the UK turns off for a couple of weeks over Christmas. It’s quite hard to get anything done if you need to. Nursing a rapidly developing cold I left the office hopeful to shake it off in time to enjoy Christmas Dinner. Just as I was […]
You sit at the computer, logged in to Air B’n’B or similar, and block out a week in May, a couple of weeks in July, a couple in October and the Christmas period. Half a dozen weeks put aside for you and the family to go and stay in your holiday let. You pay all […]
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