Property landlords
Property Landlords
The UK buy to let residential property market is evolving today!
Legislation changes
If you already own a portfolio of buy to let properties or are thinking of owning one, you may have come across the following recent tax legislation changes:
Unlike in the past when the finance cost gave 40% and 45% tax relief for higher rate tax payers, it will be restricted to the basic rate (20%) of income tax relief under the fully implemented section 24 legislation since April 2020.
This essentially means that you are not affected by the legislation changes if you are a basic rate UK tax payer. However, the new rules mean you could be pushed into the higher rate tax bracket by having more taxable income due to not being allowed to deduct mortgage interest costs. As a result, some sole trader or partner landlords can end up paying 20% additional tax on higher taxable residential rental income.
The impact of tax legislations changes will vary from case to case. The impact on rental profits, cash flow and net return on investments will depend on each individual’s personal circumstances. In worst case scenarios, a higher rate tax payer (40% or 45%) residential BTL landlord could be out of pocket due to reduced allowable tax relief of 20% on finance costs detailed above.
If you are a full/part-time BTL or an AirBnB Landlord, we can assist you with your statutory duties, accounts and tax compliance requirements, minimise your tax bill through possible incorporation and much more!
Click on the links below to learn more about our specially designed services and solutions tailor made for you!
If you would like to avail of one or more of the above mentioned services, please get in touch with us via our online enquiry form or call us on 020 3713 8407
What our clients say
My dad mentioned to me once, ‘if your accountants are able to save you money, they would be really good!’ That is what Proact Accountants have done for me.
I have partnered with them since I started to plan my own dream dental practice from scratch – The Meridian Dental Practice in 2015 and have continued to work with them along our growth journey.
The business advice, business plans, financial projections and the support provided for securing business loans for my squat practice was outstanding. We have not only managed to run Meridian Dental well but buy another practice in 2019 and are planning to get one more in our portfolio. Hiren and his team support us in our day-to-day business by providing monthly and annual financial targets, monthly management accounts and reports, tax planning and savings, and statutory compliance work as well.
Hiren has served as an external non-executive finance director for our businesses.
I truly appreciate their service and highly recommend them as a one-stop shop for all your business and financial needs.
At The Aveley Dental Practice, we are very happy with the services ProAct Accountants provided especially practice valuation, financial projections and due diligence during the process of securing finances and buying the dental practice.
Also, their financial targets and business advice since acquisition helped us turn around the practice quickly.
The ongoing monthly management accounts service package has helped us manage our expenses well while growing the practice.
We highly recommend their services and will continue to partner with them for all our business needs.
Thank you for all your hard work and proactive advice in my journey from dental associate to becoming a principal dentist and starting my dream squat dental practice in 2019. Your expertise and support throughout the journey were invaluable.
Also, I really appreciate your ongoing monthly management reports, business support, proactive tax planning and advice which helped me grow my practice and open the 2nd surgery in 2021.
Thank you for always replying promptly to any questions and giving me peace of mind in this competitive stressful business environment.
I would not hesitate to recommend your services.
Hiren has been very helpful with filing the company and personal accounts and tax returns over the years. He helped me incorporate my private income to enable tax savings. He is always approachable and is ready to answer any questions I have promptly.
He has also helped with a couple of investments.
Overall, I am very happy with his services over the years and would highly recommend him.
Hiren has been helping with my accounts and tax returns for a number of years. He also helped me to incorporate my business affairs which unlocked significant tax savings.
I engaged his services to acquire a dental practice which has been doing well with his services.
He is very professional yet friendly which I think is his strength in enabling a good client experience.
I look forward to working with him closely through my growth journey.
ProAct Accountants advised and assisted me in incorporating my dentistry income which unlocked significant tax savings.
Not only do they help me meet my statutory duties but they are very helpful and proactive in replying to my queries and business needs.
They prepare accounts and tax returns promptly soon after the financial year ends which helps me know the tax liability well in advance and gives me ample time to plan for tax payments.
They are a one-stop shop for your accountancy and tax planning needs.
Thank you ProAct Accountants for your advice and for helping me to register for UK self-employment recently.
You have been excellent so far and am looking forward to working with you for the foreseeable future.
Hiren has been working with me as an external non-executive finance director for my businesses for more than 15 years.
He has helped me with all accounting, business structuring and tax and cash flow planning needs for my diverse portfolio.
While he provides end-to-end accountancy services, I would highly recommend his business structuring, incorporation, tax planning and statutory compliance services.