Tax Accountants for Property Developers and Property Investors

bookkeeping for real estate investors

We can help you with all your general bookkeeping requirements, either at your business premises or at our office. Maybe you need help writing up the books or adding the finishing touches to the information to create your management information. Our expert team which spans audit, tax and advisory has a deep-seated understanding of REITs and investment property. We work with businesses across a number of REIT asset classes including healthcare, supermarkets, warehouses, industrial, offices, car parks and long-lease assets. Our specialist team includes real estate investment experts and we have a strong track record of providing listed companies with regulatory and governance advice.

Our bookkeepers will regularly review your entries, to ensure they’re accurate. We advise on long income assets which have seen considerable interest recently due to the uncertain macroeconomic environment. Under FRS 102, investment property whose fair value can be reliably measured without undue cost or effort must be measured at that fair value at each balance sheet date with gains and losses recognised in profit and loss. The main impact on financial reporting will be any upward revaluation going through the profit and loss account. If material amounts hit the profit or loss , there will be an effect on the results of the entity, increasing its retained earnings. Optimise your real estate investment strategy with expert perspectives.

Making Tax Digital & Open Banking ready

This is essential as the tax treatment is different depending on the activities your property business is involved with. Click here for your INSTANT ONLINE LIMITED COMPANY QUOTE All our quotes include day to day general accounting advice, our fees are fixed with no hidden extras and payable monthly by direct debit. As your Property Accountant, we offer Fixed Accounting Fees, your accounting fees are fixed for the year. You can then budget knowing that you’re not going to get an invoice every time. This way you have no surprises from your Dedicated Property Accountant.

Not only because of being more involved with key business decision-making, but because stakeholder management and senior level ownership is now more and more commonplace. More often they are now the ones who are up and about throughout the office asking questions, chasing invoices and presenting information. Even the most delicious cakes can be made better with a cherry and a sprinkling of icing on top. That’s why we offer a range of additional accounting services which you can add or remove as and when your business needs them. You’ve had your lightbulb moment, you’re ready to take your first steps into the world of buying or renting out property, now all you need is to incorporate your limited company.

International accounting standards lease accounting change

So, when you pay someone, you’ll need to record the expenses, and when you receive income, you’ll have to repeat the recording process. Like many aspects of business, your level of preparation influences your chances of success. Choosing the right accounting software will save you time, hassle and money as your business construction bookkeeping grows. Ensure you weigh up your options before you decide – it will make all the difference to your portfolio performance. You could be audited at any time by the tax office, so it’s vital you keep your records safe and accessible. Good accounting software will help you do this, with an audit trail of every transaction.

So, along with recording your rental income, you also need to record your expenses to determine whether your business is making a profit or a loss. All landlords need to appreciate that they must declare all of their rental income to HMRC to avoid being chased to pay the tax they owe – plus a penalty charge. Don’t forget also that some professional landlord organisations will also offer access to programs for free for landlords with up to three properties on their books. Fortunately, there are various software packages available and while some of these are free, it’s also worth considering the paid-for offerings, particularly since you can claim these against your tax bill. Also, the ones that cost also tend to be more professional and easier to use.

We can have you all set up in just in three simple steps…

Generally a repair will restore an asset to a condition it previously was where as capital expenditure will improve it in some way. Individuals running a property investment business will be subject to much lower rates of tax than a property trading business when they come to sell their properties. Capital gains are taxed at a rate of just 18% for basic taxpayers (20% for property traders) and 28% for higher rate taxpayers (up to 62% effective rate for property traders). In addition to this, a capital gains tax ‘Annual Exemption’ of up to £12,300 (2021/22) is available each tax year for an individual.