Landlords.
We understand the unique financial challenges that landlords face in today's dynamic property market. Whether you have a property portfolio, a buy to let or a furnished holiday let tax planning is critical. With years of experience in accounting and tax advisory services, we are committed to helping landlords navigate the complexities of tax and accounting compliance.
Expert accounting and
tax advice and guidance for landlords.
As a landlord you are operating in a complex sector and dealing with multiple changes in legislation. Tax planning is critical when it comes to minimising your tax liability. Our qualified accountants will help you keep on the right side of HMRC when it comes to tax and legislation compliance.
Record keeping & accrual vs. cash basis.
Landlords must maintain accurate and up-to-date records of rental income and expenses. This includes receipts, invoices, bank statements, and contracts. Landlords can choose between accrual and cash basis accounting for their rental income and expenses. Most landlords opt for the cash basis, which is simpler and aligns income and expenses with actual cash flow.
Expense classification & depreciation.
While UK tax law does not allow for depreciation of residential property, landlords can claim capital allowances on certain types of expenditures, such as furniture and equipment in furnished properties. Proper classification of expenses is crucial. Capital expenses (e.g., property improvements) must be distinguished from revenue expenses (e.g., repairs and maintenance) as they are treated differently for tax purposes.
Income Tax.
Rental income is subject to income tax. Landlords must report this income on their self-assessment tax returns. The rate of tax depends on the landlord’s total income and tax band (basic, higher, or additional rate).
Allowable expenses & mortgage Interest relief.
Landlords can deduct certain expenses from their rental income to reduce their tax liability. Allowable expenses include mortgage interest (subject to restrictions), maintenance and repairs, insurance, property management fees, and utility bills. The mortgage interest relief for residential properties has been phased out and replaced with a 20% tax credit. This means landlords can no longer deduct the full amount of mortgage interest from their rental income but can claim a basic rate deduction instead.
Capital gains tax (CGT).
When landlords sell a property, they may be liable for CGT on the profit made from the sale. The rate of CGT depends on whether the landlord is a basic rate or higher rate taxpayer. There are allowances and reliefs available, such as Private Residence Relief and Lettings Relief.
Stamp duty & VAT.
SDLT is payable on the purchase of additional properties. The rates vary based on the value of the property and whether the purchaser already owns other properties. There is a higher rate for additional properties. Residential rental income is generally exempt from VAT, but landlords must be aware of VAT implications if they have mixed-use properties or provide additional services.
Making tax digital (MTD):
Landlords with annual rental income over £10,000 must comply with MTD requirements. This involves maintaining digital records and submitting quarterly updates to HMRC using compatible software.
Furnished holiday lettings (FHL's).
Properties qualifying as FHL's have special tax rules, including the ability to claim capital allowances on furniture and equipment, different CGT rules, and the potential to offset losses against other income.
Non-resident landlord scheme (NRLS).
Non-resident landlords are subject to NRLS, where letting agents or tenants deduct basic rate tax from the rental income before paying it to the landlord unless an exemption is granted by HMRC.
"Boxwood have been our accountants for a number of years and provide us with advice and support. We have always found the team helpful and professional. They are always available to chat through any questions we may have and we no longer worry about getting our tax filed on time."
Peter at Curzon
Landscapes Ltd
Why not get some expert help with your accounting and tax?
You'll be surprised at how easy and affordable it is
to get the support you need.
A bespoke service from
our dedicated teams of accountants
Whether you are about to buy your first property or already have a thriving property portfolio, our expert team can help with all of your accounting and tax compliance requirements
Bookkeeping, and accounts preparation.
We can assist in setting up an efficient system for maintaining accurate and up-to-date financial records, including receipts, invoices, bank statements, and contracts. We can also prepare financial statements that give a clear picture of your income, expenses, and profitability, helping with better financial management and decision-making.
Accrual vs. cash basis and expense claims.
We can advise on the most suitable accounting method (accrual or cash basis) based on your specific circumstances and the potential tax implications. We can also help ensure expenses are correctly classified as either capital or revenue expenditures, which is crucial for accurate tax reporting and compliance. We can identify and claim all allowable expenses and reliefs, such as mortgage interest relief, repair and maintenance costs, and property management fees, to minimise tax liability.
Tax returns.
Prepare and file self-assessment tax returns accurately and on time, ensuring all rental income and allowable expenses are reported correctly.
CGT, stamp duty and VAT.
The team can provide guidance on CGT implications when selling a property, including calculating potential CGT liabilities and advising on available reliefs, such as Private Residence Relief and Lettings Relief. We can advise on SDLT liabilities when purchasing additional properties and help with planning to minimise the tax burden and we can provide advice on VAT implications, especially for landlords with mixed-use properties or those providing additional services that may have VAT implications.
Making tax digital (MTD).
We can help ensure that you comply with MTD requirements by helping you maintain digital records and submit quarterly updates to HMRC using compatible software.
Furnished holiday lettings (FHL's).
Provide advice on the special tax rules for FHL's, including capital allowances, CGT, and loss offsetting, to take advantage of beneficial tax treatments.
Non-resident landlord scheme (NRLS).
The team can assist non-resident landlords in complying with NRLS, including obtaining exemptions from withholding tax where applicable.
Tax planning and exit strategies.
We can develop tax-efficient strategies tailored to the your individual circumstances and long-term financial goals, such as structuring property ownership and financing to minimise tax liabilities. We can provide financial analysis on potential property investments, helping landlords understand the tax implications and forecast returns and we can advise on tax-efficient exit strategies for disposing of properties, including timing and methods of sale to optimise tax outcomes.
We offer a completely compliementary initial consultation.
Why not give one of the team a call today to get
answers to any questions you may have.
WHAT PEOPLE SAY
"Boxwood have been our accountants for a number of years and provide us with advice and support. We have always found the team helpful and professional. They are always available to chat through any questions we may have and we no longer worry about getting our tax filed on time.
John at Bentley Consultancy Services Ltd
"The team at Boxwood have managed my personal tax return preparation and filing since 2016 and I have found them really helpful and approachable. They are always available to answer any questions and I would have no hesitation is recommending them."
Hans-Werner at
Deutsche-Hypo Bank
"The team at Boxwood have been our accountants since 2014 and have always been helpful and proactive. They help us with our VAT, payroll and year-end filings. They always remind us when there is an approaching deadline and we no longer have to worry about our accounting and tax."
Karen at Chomp
Creative Ltd
Why should you choose us?
Keeping on top of your accounting and complying with tax legislation can be overwhelming. Partnering with the right accountants and tax advisers will make a real difference; saving time, money and worry and allowing you to focus on growing your business with peace of mind.
1
Chartered
Tax Advisers
We are fully qualified Chartered Tax Advisers & Accountants and we can provide expert advice & guidance
2
Complimentary
Consultation
We provide a completely free initial consultation, allowing you time to chat through any questions you may have
3
Competitive
Fixed Pricing
We operate on a fixed fee basis which is agreed in advance and there are absolutely no hidden costs
4
Small Business
Expertise
We have a long and established history of providing advice and support to small businesses.
Switching accountant?
If you are not getting the level of service that you expect from your current accountant then switching is very straight-forward.
1
Book our complimentary consultation and get answers to any questions you may have and get a fixed fee quotation,
2
Once you are happy that Boxwood Accountants is the right accountant and tax adviser for you then simply let us know by dropping us an email,
3
We will contact your previous accountant to advise them of the change and obtain all relevant records from them. Once we receive these the the switch is complete.
Useful tools for landlords.
