We’ve updated our accountants for commercial property owners page

With the assistance of our expert tax and accounting services, commercial property owners across London can trust us to manage their business affairs.

Investing in commercial property in the UK is a financially rewarding venture as the yields on commercial property are often higher than residential property. If you are planning to buy a commercial property in London and receive income by letting it, then it is best to work with one of our specialist commercial property accountants and let us help you with tax and accounting.

At Tax Agility, we understand that as commercial landlords, your focus is on growing your portfolio. Naturally, you want someone you can trust to help you manage the tax and accounting side, areas that are often complex, time-consuming, and best left to specialists who know what they are doing.

This informative page covers:

  • Business rates
  • Stamp Duty Land Tax
  • VAT
  • Commercial property and Inheritance Tax Relief
  • Commercial property and pensions through SIPP
  • Making Tax Digital

With years of helping commercial landlords in London, we can advise on:

  • Business structure to manage your commercial property
  • Corporate tax planning
  • Your personal tax planning, how to minimise your tax liability legitimately
  • VAT matters
  • Legitimate expenses that can be offset against rental income
  • How to maximise capital allowances on the acquisition of a commercial property

Of course, we can also assist on:

  • Accounts and bookkeeping
  • Company secretary
  • Corporate services
  • Management consultancy
  • Tax investigations

Let our accountants for commercial property owners help you

At Tax Agility, we’re passionate about accounting for commercial property. We have a team of experts who understand each and every financial rule that applies to commercial property. If you’re a commercial property owner or are planning to invest in commercial property in London, talk to one of our commercial property accountants at Tax Agility first.

Our advice is always clear and honest, plus we also offer an initial Free consultation which will allow us to understand your situations first. Contact one of our specialist accountants for commercial property owners today on 020 8108 0090. Alternatively, you can send us a message via our Contact Form.


Accountants for landlords - 3D illustration of house with key

We’ve updated our accountants for landlords page

It’s common to see news relating to London property market grabbing headlines. One day you may come across an article claiming house prices have fallen but the next day another reporter may claim otherwise.

While the property market can be unpredictable, one thing is certain: you can always count on our experienced and trusted landlord accountants if you receive an income through renting out your property.

Whether you’re someone who is looking to enter the property market or is already a veteran, you may not have the time and commitment to keep up with tax changes that can affect your rental income. This is why we have updated our accountants for landlords page by giving it a sharper focus. On the page, you can find out about:

  • Rental housing prospects in London
  • Financial considerations as a residential landlord
  • Shifting tax regulations
  • Making Tax Digital for landlords

Contact Tax Agility for landlord accountants today

We’re specialist landlord accountants in London that will go above and beyond to help you manage your accounting responsibilities, deal with shifting tax regulations and more. Get in touch with one of our specialist accountants for landlords today. Give us a call on 020 8108 0090 or send us a message via our Contact Form.


Property tax - concept image

Property Tax

Property tax - concept imageTax is a complicated subject and property tax is no exception. If you own a property or planning to own one, tax planning becomes important because buying, selling or renting out your property is likely to expose you to some form of property tax. In this article, our specialist tax accountants explain:

  • Stamp Duty Land Tax
  • Capital Gain Tax
  • Tax on rental income

Stamp Duty Land Tax

When you buy property, you must pay Stamp Duty Land Tax (SDLT). The amount you pay depends on several factors such as if you’re replacing your main residence, buying an additional property, buying a non-residential property, and if the property is freehold or leasehold.

If you are a first-time buyer, then you don’t pay SDLT on properties up to £300,000, and only 5% SDLT on anything between £300,001 and £500,000. If your property is worth more than £500,000 then you will be taxed as though you had already bought a home.

A common question relating to SDLT is if one can reduce the SDLT liability by using a company to purchase a property. The answer is generally no because HMRC applies a 15% SDLT on residential properties costing more than £500,000 if bought by a company, although there are conditions where the 15% rate does not apply, such as when the company acts in its capacity as a trustee of a settlement and purchases a chargeable interest in a residential property. To find out how you can reduce your SDLT liability legitimately, it’s best to discuss your situation with one of our experienced Tax Accountants.

Capital gains tax on property

Whenever you sell a property that has appreciated in value, you may be taxed on the profit that you make. This is capital gains tax and it typically applies to property that’s not your main home, such as buy-to-let property, business premise, land and inherited property. If you sell your home or if you live abroad, different rules will apply.

Like other taxes, there are situations where you can get a tax relief or don’t have to pay capital gain tax on property. For example, you do not need to pay tax on assets you give to your spouse or a charity as a gift.

In the event that you are liable for capital gains tax, how much you need to pay depends on how much capital gains tax allowance you have in that financial year. The good news is, the amount of annual capital gains tax allowance, aka the annual CGT exemption, has been increased by the government over the years and for the 2019/2020 tax year, you can make tax-free capital gains of up to £12,000 and couples who jointly own assets can combine this allowance.

Get in touch with us if you would like to understand more about capital gains tax and the relief associated with it.

Tax on rental income

In its simplest sense, you pay income tax on the profit you make from renting out your property. Additionally, you can also deduct finance cost (mortgage interest, interest on loans to buy furnishings, overdrafts) from rental income, but HMRC has begun to restrict this from 2017 with a mixture of old and new rules and from the tax year 2020-2021 onwards, as a residential landlord, you will get a flat rate of 20% deduction of these costs from your tax liability. The upshot of this is you will be paying more tax and receiving a smaller net profit from your rental income, particularly if you’re a landlord who already has a higher income.

One legitimate tax-efficient way to handle tax on rental income is to set-up a limited company and take advantage of corporation tax rates and dividend tax rates, which are lower than income tax and capital gains tax rates.

Contact the experts

Property tax is immensely complicated and there are numerous reliefs subject to specific conditions which may not be obvious to a property owner. At Tax Agility, our tax accountants excel in personal tax planning, and we’re always available to discuss income tax, trusts and estates, inheritance tax and capital gains tax with you.

Get in touch on 020 8108 0090, or contact us via our Online Form.

This post is intended to provide information of general interest about current business/ accounting issues. It should not replace professional advice tailored to your specific circumstances.


Accountant holding a book titled '4 reasons why'

Buy-to-Let Landlords: Four Reasons to Hire a Specialist Accountant

Accountant holding a book titled '4 reasons why'The changing landscape of buy-to-let regulation demands specialist attention this year. Landlords are beginning to feel the effects of the government’s cut in mortgage tax relief and the abolition of wear and tear allowance while lending criteria around mortgages are stricter than in past years and interest rates are rising. 2018 is no doubt a confusing time for those investing in the private rental sector, so there’s never been a better time to turn to an accountant for help.

There are numerous benefits to working with an accountant specialising in landlords, and here are four reasons to hire one this year:

Expertise

Accountants who concentrate on offering services to landlords are well-versed in knowing what taxes you need to pay, how you need to report your rental earnings to HMRC, and the best way to keep track of your accounts, be it using Xero, Quickbooks, or Free Agent. Whereas general accountancy firms might miss essential aspects of your responsibilities as a landlord, you can consult specialist landlord accountants with particular questions. You can also expect to hear impartial and tailored advice based on many years of experience.

Legislation changes

No matter what tax changes the future throws at landlords, specialist accountants will be ready to tackle them. Significant changes might be easy to follow on your own but the effects of seemingly small additions might catch landlords off guard and surprise them down the line. Accountants for landlords will make sure no sneaky tax changes slip into effect without you knowing. This is undoubtedly one of the most liberating advantages of hiring a specialist landlord accountant.

Accounts

No property owner can operate without having their books in order; they should be kept up to date and in line with the law. This is especially important if you have multiple properties as it can be easy to lose track of your rental accounts every month, resulting in missed rent and lost receipts and bills. An accountant will have a clear view of your rental accounts at all times. The importance of accurate record keeping is perhaps the most apparent during an HMRC investigation.

Tax relief

Your accountants can file your taxes for you, knowing exactly what tax relief you’re eligible for. In 2017 the government began reducing the available tax relief to landlords with the aim of gradually restricting it further by 2020. This means that it’s currently difficult to know just what you can or cannot expect when you file your tax return. A specialist landlord accountant will make sure you get the most from your investment.

Planning for the future

You may not want to stay a landlord forever and although it’s not on your mind now, you might sell your property in the future. A specialist accountant will plan for such eventualities and have advice for you when you’re ready.

No more confusion

Get all of the above specialist financial advice from Tax Agility and we’ll make your accounts fly. We have a team of landlord experts with specialist resources that will save you time and money. Speak with a professional accountant and discuss our unique accountancy packages for residential property owners (landlords).

Get in touch with us via our contact page to arrange a complimentary, no obligation meeting or call us on 020 8780 2349.


The Benefits of Working with an Accountant Specialising in Property Owners

property accountantsProperty owners (both residential and commercial) and estate agents know that there’s an enormous number of different financial areas to consider when buying, selling, or renting out property.

From having to contact HM Revenue and Customs (HMRC) to let them know you’ll be receiving rental income, to knowing what business rates you or your tenants will have to pay when moving into a new commercial property, there’s a lot to keep track of in order to ensure you stay on the right side of the law.

For this reason, there are a lot of benefits to working with an accountant specialising in the accounts of both residential property owners (landlords) and commercial property owners. Just a small number of these benefits are as follows:

We know our stuff

Here at Tax Agility, we have been working with property owners for YEARS/DECADES. For this reason, we know exactly what taxes you need to pay if you just bought a commercial property, or indeed we know exactly how you need to report your rental earnings to HMRC if you have started out renting residential properties for the first time.

Other accountancy firms that don’t specialise in this area will take up your valuable time by having to look these things up, and potentially even miss them altogether, which could be very costly to you.

We keep an eye on tax changes that may affect you

Equally important to knowing our stuff is our willingness to keep an eye on all and every change to the tax codes and legislation that may affect how much you, as a property-owning accountancy client of ours, is liable to pay.

Though it’s rare for a large, overarching tax change to be enforced under the radar, smaller changes can often come up that catch out property owners who are tasked with dealing with their own accounts, or indeed these changes can even catch out accountants who are not well versed in the complexities of property ownership taxes.

We provide a full-service accountancy experience

Here at Tax Agility, we provide a full-service accountancy experience to all of our property owner (both residential and commercial) and estate agent clients.

We understand the problematic tax implications of owning, buying, or renting property, and we take it upon ourselves to ensure you only pay the tax liabilities owed to you, nothing more, while keeping your books up to date and in line with the law. No property owner can operate without having their books in order - we make sure you’re always operating both legally and efficiently.

Experienced Accountants for Property Owners

To speak with a professional accountant to discuss our unique accountancy packages for residential (landlords) and commercial property owners, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.


What is The Help to Buy ISA?

help to buy isaThe Help to Buy ISA (Individual Savings Account) is an ISA designed to help first time buyers get onto the property ladder by allowing them to save up to £200 a month into the ISA, with the promise that once you purchase a property (worth up to £450,000 in London, and £250,000 outside the capital) the government will increase your ISA savings by 25 percent, up to a total of £3,000.

This means if you save a total of £12,000 into your Help to Buy ISA, the government will top this up by the full £3,000 to give you a total of £15,000. You may make an initial deposit of £1,000 into your individual account, with your deposit also qualifying for a 25 percent government boost.

It should be noted that the Help to Buy ISA is only available to individuals 16 years old and above, and it’s only payable to those purchasing a property within the UK. Purchases of overseas properties do not qualify under the scheme. The Help to Buy ISA cannot be used if the property is to be rented (let) out.

Couples’ Advantage

One thing which makes the Help to Buy ISA especially tempting to couples and partners, married or not, is that they’re available on a one per person basis, rather than a one per home basis. This means that you and your spouse can both pay into your own Help to Buy ISA, saving a total of £24,000 between the two accounts, and receiving a total of £6,000 from the government.

This applies not just to romantically involved individuals, but also to friends and family members who are purchasing a home together.

When’s it Available, and for How Long

The Help to Buy ISA is available through banks and building societies across the UK from this Autumn (2015). New accounts will only be available for four years, but once you’ve opened an account there’s no limit on how long it can be held.

In terms of the ISA itself there is no minimum monthly deposit, but your bonus can only be collected (upon purchase of a home) once your qualifying savings reach the minimum amount of £400, meaning you have saved a total of £1,600, with the government topping this up to £2,000.

Under the scheme’s rules of saving a maximum of just £200 a month, it will take you just over four and a half years to qualify for the maximum bonus of £3,000, should you wish for it. If you and your partner, friend, or family member also have a Help to Buy ISA you may choose to ‘cash in’ sooner.

Experienced Personal Accountants

To speak with a professional accountant to discuss the Help to Buy ISA, and whether it’s a good scheme for you to partake in, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no-obligation meeting.


Capital Gains Tax for Non-UK Residents on Residential Property

Property Tax_TaxAgility Accountants LondonFrom 6 April 2015 non-UK residents wishing to sell or dispose of a UK residential property will be required by law to contact HM Revenue and Customs (HMRC) to let them know, as Capital Gains Tax (CGT) may be due on any gains made.

This new capital gains tax for non-UK residents comes after an open consultation was held by the Government between 28 March and 21 June 2014 in a bid to discuss the best way to implement a CGT charge on non-UK residents.

Who’s Affected

According to the Government, the new CGT will affect non-UK residents (individuals or trustees), personal representatives of non-resident deceased persons, and certain non-resident companies.  These companies are mainly micro businesses controlled by five or less persons — speak with your accountant if you’re unsure if this includes your company.

Certain UK residents who dispose of UK property when abroad will also be affected, as will any of the above persons, trustees, or companies who are partners in a partnership.

If you fall into the affected group you’ll be required to contact HMRC within thirty days of selling or disposing of a UK residential property to establish whether you have a gain. You can tell HMRC of your sale or disposal online, and they advise that further information on this matter is due to follow.

Calculating Your Gain

When calculating your gain keep in mind that only the overall amount of gain after 5 April 2015 is chargeable, therefore the Government recommend that you work out your gain in one of two ways:

  • Rebasing: Establish the exact value of your property on 5 April 2015, after which you calculate your gain between then and the day your sale is completed.
  • Apportioning: Apportion the whole gain on the length of time you owned the property after 5 April 2015, compared to the total time you’ve owned it.

If you know you’ll be selling within the next few months it’s a good idea to record the overall value of the property at the start of April, as this will make the job of valuing it once it sells that much easier. We recommend bringing in an independent valuer (or two), as this will ensure HMRC are less likely to query it.

The Government advise that the amount you’ll pay will depend on the value of your gain between 6 April 2015 and the day your sale is completed, whether or not you have unused losses to take advantage of, and the amount of private residence relief you may hold. Other factors that could affect the amount you pay include whether or not you have an annual exemption limit, the amount of indexation allowance (if you’re a company), and the current CGT rate.

Experienced Capital Gains Tax (CGT) Accountants

To speak with a professional to discuss this new Capital Gains Tax for non-UK residents, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no-obligation meeting.


How to Claim Expenses if You Work from Home

HomeOffice_TaxAgility Accountants LondonYou’re not alone. Knowing what expenses you can and can’t claim back when working from home can be a headache for many of us, with the complexity of the issue often causing us to not claim back all the reliefs we’re entitled to.

To help shed some light on this complex issue we’ve detailed below six areas that are often at the top of mind when trying to decide upon what expenses can and can’t be claimed back. To ensure you don’t miss out on the tax reliefs you’re entitled to, keep reading.
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Capital Gains on UK Property for Non-Residents

UK Property_TaxAgility Accountants LondonIn his Autumn Statement, delivered to parliament early last month, Chancellor of the Exchequer George Osborne touched upon legislation, due to come into effect from April 2015, requiring non-UK residents to pay UK Capital Gains Tax (CGT) on sales of any UK residential properties – regardless of their sale value.

Though the main features surrounding the likely structure of this Capital Gains Tax have been revealed, the full details regarding this move have yet to be discussed, with a consultation on how the legislation can best be introduced set to be published early this year, once HMRC have been given a chance to look over the suggested new features.
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