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Hello,

Just wondering how everyone pays their accountant as I have been quoted £50.00 PCM. 

Is this advisable for someone just getting started? Or can I ask for a quote when I am ready to file at the end of the tax year? 

Which is more cost effective

Kind Regards

Nic

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15 hours ago, julia urquhart said:

I do my own with the help of Tax Calc - really easy to do :)

 

Depends on how simple/complex your setup is. At the simple end i.e a few properties doing standard BTL, DIY is fine. As you expand then having the odd employee etc starts to make having an accountant worthwhile

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Its quite simple as I am just starting out, however I want to get the set up right from the beginning, As this is not my area of expertise, I though I`d let the professionals do it.

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1 hour ago, Nikki said:

Its quite simple as I am just starting out, however I want to get the set up right from the beginning, As this is not my area of expertise, I though I`d let the professionals do it.

If you are just starting up and only have 1 or 2 houses, £50pcm is quite a big chunk from your income.

Your money - your choice though :)

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23 hours ago, julia urquhart said:

If you are just starting up and only have 1 or 2 houses, £50pcm is quite a big chunk from your income.

Your money - your choice though :)

Thanks Julia, after some thought I think I might have a go setting things up using the wealth of information available on the internet

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10 minutes ago, Nikki said:

Thanks Julia, after some thought I think I might have a go setting things up using the wealth of information available on the internet

I think that in order to make a profit as a LL in the current environment it is important to recognise what you can & can't do. Clearly most of us are not 'gas safe' so must pay for boiler service etc. Most of us can paint our properties and do minor repairs - so that saves us money. With HMRC online portal & software such as TaxCalc, tax returns are not as onerous as they used to be, for most people so this is definitely an area where a can-do attitude can reap rewards. If you find it too difficult, you can alway go to an accountant but if you can do it you will save yourself plenty of ££ over the years.

Good luck :)

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If you're planning to develop a large portfolio of properties, then might be prudent to get some tax advice upfront to ensure it's set up correctly and in a tax-efficient manner. Easier to establish when it's early days than trying to unwind things at a later date. 

Perhaps pay for one-off advice at the start, or assistance to submit the first year's accounts. Maybe try to do your own at the same time and see if it matches up with the accountant's figures. Then ask loads of questions about it and if you're confident enough give it a crack yourself the following year.

Don't forget, you can expense the tax advice.


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Agree with DerekT

You are not paying for the admin, anyone can bookkeep, you are paying for someone to spot problems and opportunities that you otherwise wouldnt have been aware of. This is a penny wise pound foolish kind of situation.

Imagine if you assumed that you could move a personl property into a limited company down the line? Without someone flagging this and advising the costs you might face, that could have been a very costly mistake. What else dont you know?

I email my accountant all the time with "can i do x?" questions and sometimes im surprised theres an opportunity to make or save money i wouldnt have dared just try on my own.


Stuart Phillips
043_logo_final-tiny.png
AALTO Mortgages Ltd

Independent, Whole of Market, BTL Specialist.

 

http://www.aaltomortgages.com
sales@aaltomortgages.com
0207 183 1101

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On 10/15/2020 at 9:08 PM, Nikki said:

quoted £50.00 PCM

This is competitive but be sure to see what is included for this figure. Are you going to be able to ask this accountant questions throughout the year or is it simply to produce statutory accounts at the end of the year? Tax advice throughout is where an accountant can really add value and stop you making expensive mistakes.

Also charging monthly seems to be more popular these days but many accountants also offer an annualised fee if that makes things easier.


David M Slater ACMA CGMA

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926

info@accufy.uk

 

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