Property development is a complex business where you can’t afford to get matters wrong from an accounting and taxation perspective. To have a solid foundation for your property ventures, you need to get the right financial structures in place. This guide is intended to help property developers navigate their way through the various issues involved.
Filing Dates For Property Developers
Property developers must file a company tax return when they get a notice to deliver it from HM Revenue and Customs (HMRC). HMRC uses a system called Self Assessment Company Filing to collect income tax. The system allows HMRC to collect tax automatically. The deadline for filing tax returns for property developers who file online is 31 January. Property developers should ensure they are not late in filing their tax returns as this would attract tough penalties from HMRC.
Tax Advice on the Allowable Expenses For Property Developers
As a property developer, you are bound to incur expenses in the running and maintenance of your property. You can reduce your tax bill by claiming for the expenses you have met. Knowing how to make the most of the allowances and expenses you have will see you reap more profits from your business by cutting down your tax bill. The most common expenses that property developers can deduct include:
* Water rates and council tax
* Cost of maintenance services
* Rents and service charges
* Accountant’s fees
* Contents insurance
* Direct costs such as electricity, advertising for tenants, etc
Where only a part of the expense meets the conditions set for a deduction, then property developers will deduct that part from their income.
Accountancy Services Property Developers Need
Property development involves relatively few transactions but each is of a very high value. How these transactions are reflected in the accounts have far-reaching effects on taxation liabilities. Property developers, therefore, need accounting services from expert property accountants to ensure everything is done right. Property accountants offer different services depending on whether you are self-employed or a limited company. These services include audit, securing finance, account preparation, tax planning, advice on long-term efficiency and specific services tailored to meet business requirements.
Choosing an Online Accountant
Choosing an online accountant can be a daunting task. You will be putting your company’s finances in the hands of an individual you have never met face to face. It is important that you choose an online accountant carefully. Start by checking the accountant’s reviews and qualifications on Google. Qualified accountants are regulated by a professional body. Pick an accountant whose reviews portray him as knowledgeable, experienced and ethical.
Choosing the Right Accountants in London
Choosing the right accountant to handle your finances will save you time and money. There are many companies offering accounting for property developers in London. Selecting the right accountant begins with determining your business needs and then evaluating specific factors such as the accountant’s division of workload, the software they use and how much they charge.
It is advisable to find an accountant with experience in preparing financial documents for companies that are similar to your company in size and revenue. An accountant who has previously worked in your niche is a suitable candidate since he will understand the unique needs of your business.