Yearly Archives: 2024

Running a small business doesn’t mean you have fewer responsibilities than those who own a bigger company. There are still plenty of things to take care of—from sales to customer service to daily operations. Doing all these tasks may leave you no room to check on your business’s financial health, resulting in money issues that are left ignored until the last minute. Ultimately, you might wonder where you went wrong and why you are scrambling to get your accounts and books together for tax season.

The good news is that there’s a way to avoid these problems and inconveniences, and that’s by hiring small business accountants in London.

Small business accountants will not only take care of your accounting and bookkeeping. These experts can also help you manage your financial statements, oversee your cash flow, and ensure accurate and timely tax filings and payments.

Tailored services based on your needs

Small business accountants in London understand that no two businesses are exactly alike, so they take the time to understand your company—and even your personality and objectives. This way, they can customise their services and offerings according to your exact requirements. You can count on them as a trustworthy partner you can depend on for advice on your business, finances, taxes, and personal money concerns. Ultimately, they want to help you make informed choices that can reduce risk and increase opportunities to grow your business.

Achieve your objectives

Small business accountants in London understand how unpredictable and challenging the business environment can be. They will ensure that you’re ready for the future and any surprises. Chartered accountants can suggest strategies and create a feasible and up-to-date business plan that reflects your cash flow and projected profits. This way, they support you in achieving your objectives.

Know where you are

Small business accountants can monitor your progress and determine if you are hitting your targets by preparing monthly management accounts. Their accurate and up-to-date data can provide the insights you need to plan for your company’s future.

Business advice

You can also depend on small business accountants for advice on tax-efficient profit extraction, strategic business decisions, employee incentive schemes, and tax savings. Moreover, they can recommend solutions to advance your business growth. For instance, if you’re running an e-commerce business, they can suggest maximising government schemes like research and development tax credits, SEIS, and EIS.

If you’re convinced about hiring small business accountants in London, don’t hesitate to call Allenby Accountants at 0208 914 8887 for a quote.

A popular property investment strategy in the UK, buy-to-let, involves purchasing a property with a mortgage to rent it out, thus generating rental income that is then used to pay off the mortgage.

While this strategy has the potential to enhance your property and overall investment portfolio, the associated costs and taxes can be complex and overwhelming. You can benefit from the expertise of accountants for landlords.

A buy-to-let mortgage often requires a higher initial investment than a standard mortgage. You typically need to pay a deposit of around 25% (though it can vary). There are also various tax implications linked to buy-to-let properties:

• Income tax – This tax applies to landlords who rely on rent as their income. If you fall in this category, you are required to declare the rent you earn in your self-assessment tax returns. The tax on your rental income will be 20%, 40%, or 45%, depending on whether you are a basic-rate, higher-rate, or additional-rate taxpayer.

That said, you may be able to reduce your taxes by deducting allowable expenses from your rental income. These expenses include letting agent fees, maintenance costs, and mortgage interest payments. Accountants for landlords are adept at identifying these deductible expenses and can incorporate them into your tax calculations, ensuring that you pay the correct amount of tax.

• Capital gains tax – When considering a buy-to-let investment, most investors expect to profit from the property’s increasing market value. However, selling a buy-to-let property entails paying capital gains tax on the profit, which is calculated after deducting allowable costs like stamp duty, improvement costs, legal fees, and the original purchase price. Accountants for landlords can provide detailed advice on these tax obligations to help investors understand their potential tax liabilities when selling a property.

• Stamp duty tax – Accountants for landlords also specialise in assessing stamp duty tax eligibility. This tax usually affects properties below £300,000 (but it’s waived for first-time buyers). The cost of the property determines the rate, with a 3% extra charge on second properties. In certain situations, a refund may be available if the first property is sold within 18 months. Accountants for landlords can help investors understand if they qualify for any stamp duty reliefs or refunds, potentially lessening their tax obligations.

These are just some taxes that apply to landlords and property investors in a buy-to-let scenario. To learn more, arrange a meeting with Allenby Accountants by calling 0208 914 8887.