This week we turn our attentions to tax: it might be inevitable, but could you be paying more than you need to because you’re not setting up your property business correctly?
We’re far from experts on tax matters, so we invited Chartered Accountant Iain Wallis to provide the information. He wrote it up in this blog post for us, and we talk it through during this episode. You might find it useful to both read and listen to help you understand the issues if you’re totally new to the whole area.
We talk about:
- Does HMRC consider you an investor or a trader, and what difference does it make in terms of tax?
- Should you invest through a limited company or not (probably the #1 question we get)
- The importance of understanding the difference between revenue and capital expenses
- A clever way to count some of your legal fees as revenue costs
- A list of all the expenses you can offset against your income
- The tax position for non-UK residents who invest in UK property
- Understanding Capital Gains Tax
- Benefiting from Principal Private Residence relief on properties you’ve ever lived in
A big thank you to Iain for helping us out with this episode. Even if you take our recommendation to employ an accountant to take care of tax matters for you, it’s still invaluable to educate yourself about the basics.
Resource of the week
Rob D’s renewal of his National Landlords’ Association (NLA) membership dropped through the door this week, so he thought it was a good opportunity to give it a shout-out.
Being an NLA member costs £89 per year, and you benefit from access to a free hotline to ask any tenancy-related questions, discounts on accredited suppliers, networking events, a monthly magazine and more.
You might be happier delegating all such matters to a lettings agent and never thinking about it again, but otherwise it might be worth a look – Rob finds it a great way to keep on top of current issues and have the comfort of access to the hotline.
This week’s news
The government’s Help To Buy scheme has been launched three months early – or has it?
The small print shows that you can only apply now, so is the whole announcement just political point-scoring? And is it true that the lenders are nowhere near ready anyway? We air our conspiracy theories and open ourselves up to looking very daft in the future by making our predictions!
Tell us what you thought of the show!
Do you have a tax question we didn’t answer?
Anything you understand better as a result of listening?
Let us know in the comments!
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