We are specialist property accountants based in Surrey, with in-depth knowledge of accounting issues surrounding property investment, development, and tax management.
Butt Miller Property Accountants
At Butt Miller we know that owning properties can be complicated. This is why you need a good property accountant who knows the ins and outs of the latest tax rules and is in a position to help you efficiently plan for your upcoming taxes, tax breaks and making tax digital.
Why you need a property accountant?
There have been significant changes to the way in which properties are taxed in recent years – most notably the switch from mortgage interest relief on residential property being a deduction from profits to being a tax credit.
Having a good accountant who is experienced in the real estate sector and up to date with tax changes is important, in order to ensure that you pay the right amount of tax.
In addition to advising on preparing your accounts and tax returns, they can also assist when it comes to raising finance against your portfolio.
Peace of mind is vital when trying to develop a business. In 2021 HM Revenue tax investigations revenue rose to £30.8bn. To avoid being part of that statistic, you need to have the assurance that your tax return is right. Rather than try to do this yourself, using an accountant will help eliminate errors and make sure that the information is presented correctly.
A property accountant will be aware of issues that have impacted other clients allowing you to benefit from experience in the market. Having up to date accounts can also be vital in monitoring the efficiency of your business, and this is no different for a property portfolio. Knowing that a particular property is not yielding a commercial return for the capital invested is invaluable for planning for your future.
Property investment planning
Property businesses can produce significant amounts of income and landlords often view their portfolio as a pension alternative.
However, properties will also give rise to capital gains tax and Inheritance Tax charges. Planning for when you sell properties to make best use of the allowances available to you, can make a significant difference to your Capital Gains Tax charge. We’ll talk you through these additional charges and make sure that you comply with current UK reporting rules.
Property tax planning
Having built up a portfolio of properties, it can be disheartening to find that the tax man is going to take a chunk of your property investment on your death.
We work with property investors to establish their needs and explore ways of minimising the inevitable Inheritance Tax charge on your estate allowing you to pass your life’s work to your family members with ease.
As specialist property accountants, we will guide you through your property journey from your first buy to let property, to the liquidation of your portfolio. After all, good tax advice can make a world of difference.
Why choose Butt Miller as your property accountants Surrey
Butt Miller are specialist property accountants offering tax advice for commercial and residential property developers, investors and owners. We work collaboratively with our clients to create optimum real estate investments and structures that minimise risk yet maximise returns.
Please call or email us at Butt Miller, we’d be delighted to help.
Property Investment FAQs
What is a property portfolio?
A property portfolio is simply a collection of properties that property investors own as individuals or as a limited company. This can be a range of different properties such as offices, shops, warehouses, overseas properties, student lets and houses of multiple occupancy (HMOs).
Is property accounting hard?
Property tax in the UK is complicated, covering a range of taxes, including Income Tax, Corporation Tax, Capital Gains Tax, Stamp Duty Land Tax in England, VAT and Inheritance Tax.
Property accountants can help property investors avoid some very costly mistakes. From knowing what can and cannot be deducted from income under the latest rules, to knowing whether a purchase will qualify for Stamp Duty Land Tax relief, it is important to know how and when you can save tax.
Errors made due to a lack of knowledge can be very costly, reducing your profits from your property business and potentially exposing you to penalties from HMRC.
Can you do property accounting online?
Online accounting firms and software packages are abundant, but many will do no more than process the numbers.
Unless your accountant knows you well, it is unlikely that they will be able to give you the best advice for keeping ahead of your tax returns and planning for tax implications of transactions. This is where property tax specialists can make a real difference to you and your business.
There are many different cloud based software packages that can be used to capture data and produce reports as and when needed. Our preferred supplier is Xero, as it allows you to manage your finances in real-time.
The information of course still needs to be entered and the less time you devote to this, the more out of date or inaccurate any reports will be.
Should I form a limited company for my property investment portfolio?
In the right circumstances, owning a property portfolio through a limited company can be highly efficient, but it doesn't work for everyone.
If you are starting out and planning to build a portfolio, the company structure could be the right one for you. But, if you already have investment properties, trying to put them into a company will probably trigger some high tax charges.
Speak to your accountant as early as possible to make sure that you get the planning right.
Are property accountants expensive?
It is all a matter of perspective. Whilst there will be accountants that offer cheap packages, the services provided may not be the bargain it seems. An accountant that makes your life easier and reduces your tax bill, whilst at the same time helping you avoid late penalties, will be worth their cost...and the fees charged are usually deductible from your rental income.
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