Should we get an accountant?

jacky_horn

Hi we are newbies as landlords. Just bought a flat and rented it out within 13 days of getting the keys to a lovely tenant. My husband and I work part time - semi retired. We have kept all receipts for things bought - a new kitchen, decorator etc. My question is, should we get an accountant for when the tax year ends? We only have PAYE tax, so don't even know how to tell the tax man we have a flat, though I suppose, a phone call to a tax office would sort that. What do you suggest? Is it easy enough to do everything absolutely legally but tax efficiently ourselves? We are not thick, have decent jobs but are inexperienced in this field. Any suggestions welcomed and thank you.

Accountant_Kerry

you can do this easily yourselve, especially if you only have the 1 property you are renting out, contact your tax office and they can register you and give you advice, they sometimes run courses on this so ask about that.

LandyAndy

Join a landlords forum. There will be plenty of advice there on tax efficiency among other things. I'm not a landlord so I won't recommend one but there are plenty of people here who will be able to.

And, yes, a reasonably intelligent person should be able to do all the accounting/tax affairs themselves although that is easy for me to say as I am an accountant.

jacky_horn

Brilliant. Thanks for the advice.

princeofpounds

The first time you do it, it will take some time to learn the ropes, but it's not that bad particularly if you have a good source (like a landlord's association) to provide guidance. HMRC are generally quite helpful too - you can even make an appointment to go see them at your local tax office if you want to speak face to face.

Second time round you will find it easy.

Just make sure you are super-organised with your records, makes life much easier!

tbs624

Get the info straight from the horse's mouth - google HMRC and PIM (Property Income Manual)

Have a look at the Land and Property pages SA105 and relevant guidance notes then ask the local tax office if you get stuck: they can be almost human on a good day

Also google "property letting" and follow the links from the first .gov.uk site - there's a broad guide to what you can set down tucked in there.

Remember that if you do choose to use an accountant you can set down the costs of doing so.

You may find it helpful to check whether there is a local LL association ( some are affiliated to the national ones - RLA/NLA/Guild of Res LLs etc) and look at LandlordLaw run by a specialist LL&T solicitor. Membership fees to any of these can against be set down on your tax return, plus you can qualify for premium reductions on your LL insurance policies.

As it was a quick turn around on your property, you did manage to sort a GSC and scheme reg your T's deposit etc didn't you?

Your local Council may run accreditation schemes for private LLs and the LL Assocs run training courses too.

Wings

jacky_horn wrote: »

Brilliant. Thanks for the advice.

I am a landlord, and i prepare both my own investment accounts and my self assessment tax return, however in your case, since you need to ask the question, then yes, find an accountant for a general chat.

Geenie

I do use an accountant, but I have friends who don't and are quite savvy doing everything online with HMRC. What we do have in common is using a programme to record all of our transactions. I use QuickBooks. (others available I'm sure, but don't know names ) It keeps me on top of what is going in or out and I send the details to my accountant when tax due.

G_M

If you are reasonably intelligent, have some time, and are willing to learn, then yes - DIY.

Use all the references above to get the info you need.

As tbs624 said - you did get all the paperwork/processes in place for your tenancy didn't you?

bsua4c

I have the one property and for ease use an accountant. £200 +vat last year but all claimed back against property income

jacky_horn

Hi

Thanks to all for replying. You have given me some great advice and web addresses. I think I will try it myself and see how I get on.

Although the turn around was quick we think we did everything you should. We put her deposit in a deposit protection scheme and gave her the details, There is no gas in the flat, so that simplified things. We gave her a contract, well two and she signed both and we did then we each retained one.

I also made out an inventory even though it was just curtains and carpets, light fittings and a washer and cooker. I itemised each thing and stated its condition. I gave her two copies and we both signed them and each retained a copy. I hope I wasn't supposed to do anything else.

The flat has night storage heaters. We don't have experience of them. we tested them to ensure they worked and sent off for 2 new knobs to replace cracked ones. We texted her in the bad weather to see if she was warm enough and she told us not to worry, she was toasty.

If anyone can see a glaring omission in what we have done please let us know. I want to be a good LL and do everything legally, but also treat my tenant as a person, not just a source of income (which she is, I know)

Thank you for all your help