SELF-EMPLOYED & LANDLORDS
Landlords
When you start renting out property, you must tell HMRC and you may have to pay tax. If you don’t you could be charged a penalty! Longmires can help you register and claim the full allowances available!
Am I a Self Employed Landlord or running a Property Business?
Is being a landlord your main job?
Do you rent out multiple properties?
Looking at buying more properties?
If so you will need to pay Class 2 NIC
Thinking about becoming a landlord or property developer? Don't be caught out paying too little or too much Tax!
LANDLORDS
With one in five homes now being owned by a landlord it is official there is a buy-to-let boom! In Britain there is approximately 2 million homes owned by landlords. This has doubled over the last decade.
With a change in Dividend tax coming into effect from April 2016 it is imperative you know what is coming and how to best minimise your tax on dividends.
Self- Assessment needed for property rental income > £2,500 p.a
Accountant can act as your agent with HMRC
Tax return due and tax paid by 31st January
Direct Costs of letting the property can be claimed
Renovation costs can only be used to offset Capital Gains Tax (CGT)
There are some taxation differences to whether you are developing property or in it for the longer term...
There's also the choice of becoming a Limited Business, there are differences and we can help you decide which path to take...
Property Developer
Can reduce CGT due on disposal if Sole Trader or Partnership
Gains may also qualify for Entrepreneurs Relief
Purchase costs and renovation costs can be used to reduce CGT
Ltd Co's pay Corporation Tax and potentially ATED-related CGT
Annual self-assessments will need to be completed we can help ensure you do not pay too much or too little tax:
Prices dependant on No of Properties. Price start from (+ VAT):
1
2
3
4
5+
£150.00
£250.00
£350.00
£450.00
£550.00
SELF-EMPLOYED
Self-employment in the UK is at its highest level since records began almost 40 years ago, according to a report by the Office for National Statistics, with taxi-driving, construction and carpentry among the most common jobs.
There are 4.6 million people working for themselves, with the proportion of the total workforce self-employed at 15% compared with 13% in 2008, and 8.7% in 1975.
So you are not alone, and here at Longmires we make you feel like part of our team:
It is Easy to become self-employed – just let HMRC know you have become self-employed by registering on line (we can do this for you).
HMRC will issue you a Unique Tax Reference Number (UTR) within 10 days
Year-end will always be 5th April
Self-Assessment Tax Return needs to be completed by 31st January the following year – penalties will be given
Tax and NI payments are calculated once you have submitted your return
There are allowable expenses that can be claimed such as use of home, an accountant can usually ensure you are claiming the maximum expenses possible
Annual self-assessments will need to be completed we can help ensure you do not pay too much or too little tax:
Prices dependant on turnover. Prices start from (+ VAT):
< £25,000 - £150.00
< £50,000 - £300.00
< £75,000 - £450.00
< £100,000 - £600.00
As our accountant for the past 9 years Sarah Steel has been handling both our partnership and personal accounts, we have found that both her expertise and knowledge of the tax system is of great importance when it comes to self-assessments. She is always on hand to help with any queries that pop up with HMRC and you can rely on her to deal with them very efficiently.
D Buckley
Sarah at Longmires has looked after my accounts for a number of years now. She has managed me effectively through a number of significant changes, including working internationally. Sarah has always been consistent and accurate in all of the returns and is always diligent in letting me know when deadlines are approaching. I feel Sarah has always had mine, my properties and my business's best interests at heart and I value all of the advice she had provided. Polite, reliable, caring and proactive is how I would describe the service I receive from Longmires.
C Wilson
