Looking for a Buy to Let Accountant?
Discussion
Eric Mc said:
Most accountants can be hired - at a price.
Look on us as the hit-men of the business world.
Look on us as the hit-men of the business world.
You must be a hell of lot more exciting than our accountants Eric. Mind you none of them drive Caterhams eitherMark, what are you looking to do? Simply account your buy to let income versus outgoings effectively?
I suspect someone like Eric would know exactly what to do to keep it all legal and above board.
scotal said:
Mark, what are you looking to do? Simply account your buy to let income versus outgoings effectively?
I suspect someone like Eric would know exactly what to do to keep it all legal and above board.
The answer is yes I only have one buy to let so not exactly the biggest job in the world!I suspect someone like Eric would know exactly what to do to keep it all legal and above board.
Add up your gross Rental income for the year to 5 April 2008.
Deduct your allowable expenses which are -
Maintenance and repair costs
Morgtage Interest (note - not the full repayments - unless it is an interest only mortage, of course)
Management charges - usually those charges paid to a letting agent. If you manage the property yourself, then you can claim for management costs incurred by you - mileage, travel costs etc
Insurance
Advertising (for new tenants)
Legal costs (for administration of the rental activity - but not any legal costs involved in the original purchase)
Accounting Costs (if incurred) in producing rental income figures
Rates, Council Tax and Water Charges met by the landlord
If the property is let furnished, the cost of renewing furniture is allowed. Alternatively, the landlord can claim a blanket 10% Wear and Tear allowance instead. The 10% is based on the Gross Rental Income less Rates, Council Tax and Water Charges met by the landlord.
Major building costs will more likely be looked on as "capital" in nature and are not allowable as a deduction against the rental income. However, they can be added to the original purchase cost of the property which will help reduce any Capital Gains in the future.
Deduct your allowable expenses which are -
Maintenance and repair costs
Morgtage Interest (note - not the full repayments - unless it is an interest only mortage, of course)
Management charges - usually those charges paid to a letting agent. If you manage the property yourself, then you can claim for management costs incurred by you - mileage, travel costs etc
Insurance
Advertising (for new tenants)
Legal costs (for administration of the rental activity - but not any legal costs involved in the original purchase)
Accounting Costs (if incurred) in producing rental income figures
Rates, Council Tax and Water Charges met by the landlord
If the property is let furnished, the cost of renewing furniture is allowed. Alternatively, the landlord can claim a blanket 10% Wear and Tear allowance instead. The 10% is based on the Gross Rental Income less Rates, Council Tax and Water Charges met by the landlord.
Major building costs will more likely be looked on as "capital" in nature and are not allowable as a deduction against the rental income. However, they can be added to the original purchase cost of the property which will help reduce any Capital Gains in the future.
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