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Should I purchase my BTL through a LTD company?


That’s a common question we get asked. Now that mortgage interest is no longer fully tax deductible this increases the amount of tax owing for landlords. However, the general rule is that if you are a 40% taxpayer then a Ltd company is a sensible option for you. If you are planning more BTL purchases in the future then a company is definitely an attractive route. In a company mortgage interest relief is fully tax deductible and the tax rate is 19%. For individuals who are 20% taxpayers then the mortgage interest restriction rule should not impact you. So purchasing in your own name is still a sensible option. However, if you are close to becoming a 40% taxpayer i.e. earning close to £50,000 and you are planning to build a portfolio then it might be worth using a Ltd company from the start. As part of our fixed fee service we include business planning and structuring as part of our service.




Can I claim home expenses as part of my property business?


It is possible to claim a portion of home expenses when undertaking property business related activities in your home. Home expenses include electric, gas, water, mortgage interest, rent, cleaning costs and repairs. You can either claim simplified expenses, approved by HMRC, to save time recording expenses. Alternatively, you can record and claim a portion of home expenses by reference to the area of your home you use for business and the time spent undertaking the property related work. Here at The Property Accoutant we have a free excel template which our clients can use to record their costs. Please email us if you would like a copy.




My siblings and I are inheriting a property (worth £240k), which has a mortgage attached, how should we structure the ownership?


This will depend on what tax rate each of you pay and what your future plans are. If you are all basic rate taxpayers, and unlikely to be 40% taxpayers anytime soon, then individual ownership should be fine. You may want to hold as a partnership if you want flexibility and are looking to incorporate in the future, as this has tax advantages. If you are all higher rate taxpayers and looking to purchase more properties in the future then a Ltd company is a sensible option. This avoids being penalised by the mortgage interest restriction rules and the company has a lower rate of tax (19%), which means more net profits to recycle and build cash reserves for the future. Of course one of the most important points here is making sure you are all on the same page and you plan for potential exits in the future. This will avoid potential disagreements going forward.




Do I need a separate bank account for my property business?


We would certainly recommend it as it makes the tax and accounts more straightforward. Plus you can use the account to build up your tax provision and cash buffer to fund future acquisitions.




I've rented out my old property to move in with my girlfriend. We've now decided to sell her house and buy a bigger house together. Will we have to pay the 3% surcharge.


As you are both purchasers of a residential property, both of your individual positions will be taken into account for determining whether the 3% SDLT surcharge applies. Firstly, looking at your position, you are not replacing your main





Charts and Trends

How do charts and trends work in LogTAP?


- Each chart can compare one parameter for several units - The chart is updated after every log entry - The trend scope can be changed to weekly, monthly, or bi-annual time frames Note: Charts for new units will require 1 day of data before trends can be populated




Creating a Chart


To create a new chart, perform the following steps: 1. Select the Add button (plus icon), located at the center of the navigation menu. 2. Select "New Chart" 3. Select the parameter you want to trend 4. Select "Next", located at the top right of the Parameter screen 5. Select the Units you would like to trend 6. Select "Next", located at the top right of the Units screen 7. Select your desired graph style Note: this can be modified after chart creation 8. Select "Done", located at the top right of the Style screen




Sharing Charts With Your Team


To share charts with your team, perform the steps in "Customizing and Modifying a Chart" then toggle "Share Chart With Team" to the ON position.




Customizing and Modifying a Chart


To customize or modify your chart, perform the following steps: 1. Navigate to the Dashboard screen 2. Select the chart you want to modify 3. Select "Edit", located at the top right of the screen 4. Modify any options as needed 5. Select "SAVE:, located at the top right of the screen





Team Management

Should I purchase my BTL through a LTD company?


That’s a common question we get asked. Now that mortgage interest is no longer fully tax deductible this increases the amount of tax owing for landlords. However, the general rule is that if you are a 40% taxpayer then a Ltd company is a sensible option for you. If you are planning more BTL purchases in the future then a company is definitely an attractive route. In a company mortgage interest relief is fully tax deductible and the tax rate is 19%. For individuals who are 20% taxpayers then the mortgage interest restriction rule should not impact you. So purchasing in your own name is still a sensible option. However, if you are close to becoming a 40% taxpayer i.e. earning close to £50,000 and you are planning to build a portfolio then it might be worth using a Ltd company from the start. As part of our fixed fee service we include business planning and structuring as part of our service.




Can I claim home expenses as part of my property business?


It is possible to claim a portion of home expenses when undertaking property business related activities in your home. Home expenses include electric, gas, water, mortgage interest, rent, cleaning costs and repairs. You can either claim simplified expenses, approved by HMRC, to save time recording expenses. Alternatively, you can record and claim a portion of home expenses by reference to the area of your home you use for business and the time spent undertaking the property related work. Here at The Property Accoutant we have a free excel template which our clients can use to record their costs. Please email us if you would like a copy.




My siblings and I are inheriting a property (worth £240k), which has a mortgage attached, how should we structure the ownership?


This will depend on what tax rate each of you pay and what your future plans are. If you are all basic rate taxpayers, and unlikely to be 40% taxpayers anytime soon, then individual ownership should be fine. You may want to hold as a partnership if you want flexibility and are looking to incorporate in the future, as this has tax advantages. If you are all higher rate taxpayers and looking to purchase more properties in the future then a Ltd company is a sensible option. This avoids being penalised by the mortgage interest restriction rules and the company has a lower rate of tax (19%), which means more net profits to recycle and build cash reserves for the future. Of course one of the most important points here is making sure you are all on the same page and you plan for potential exits in the future. This will avoid potential disagreements going forward.




Do I need a separate bank account for my property business?


We would certainly recommend it as it makes the tax and accounts more straightforward. Plus you can use the account to build up your tax provision and cash buffer to fund future acquisitions.




I've rented out my old property to move in with my girlfriend. We've now decided to sell her house and buy a bigger house together. Will we have to pay the 3% surcharge.


As you are both purchasers of a residential property, both of your individual positions will be taken into account for determining whether the 3% SDLT surcharge applies. Firstly, looking at your position, you are not replacing your main