PJCO Chartered Certified Accountants

New PJCO Chartered Certified Accountants #youtubevideo Q & A with Peter Jarman & Amy Manvell ACCA: The Let Property Campaign Do you have #undeclared #rental #income? #HMRC will find you!  If you have rented out a #residential #property in the #UK or abroad, and you have not declared the income to HMRC; we recommend you act as soon as possible. HMRC can use #land registries, #stampduty land #tax forms, council tax registers, and third-party notices such as estate agents, banks, solicitors, and letting agents, to find out if you own/previously owned a property that was not your main #residence.     If this relates to you – don’t panic. We can help you declare your income through the #letpropertycampaign disclosure. The Let Property Campaign is an #opportunity for #landlords who owe tax through letting out residential property, to get up to date with their tax affairs in a simple way and take advantage of the best possible terms.  If you #voluntarily come forward and make the #disclosure to HMRC, you will be given a more advantageous #penalty rate, than if HMRC finds you first. The first step is to notify HMRC of the disclosure, and you then have 90 days to work out and #pay what you owe.    Please feel free to get in contact with our BTL team at PJCO if you need some assistance! -   https://lnkd.in/dX8-Xaq or call us 01273 44 11 87

Can the Budget Change in SDLT Affect Your Return on Investment? The recent adjustments to Stamp Duty Land Tax (SDLT) announced in the Labour budget on October 30, 2024, have brought significant implications for property investors. If you’re looking to make a residential property purchase, it’s important to consider how these changes may affect your return on investment (ROI). In a previous blog, we outlined the new SDLT thresholds and rates in detail: https://ow.ly/5BE550UfNKC Here, we’ll delve into how these changes can directly impact your financial outcomes and why it’s essential to reassess your investment strategy. What Does SDLT Mean for ROI? SDLT is a significant upfront cost for property investors, and any changes to this tax can impact both your ROI and cash flow. To better illustrate, here’s a comparison of two scenarios based on the same property value and rental income but with different SDLT rates. Example Scenarios Scenario 1: Pre-Budget SDLT Rates Property Value: £500,000 Expected Rental Income: £30,000 per year Expected Legal Fees: £3,000 SDLT Paid: £27,500 ROI: 5.7% The ROI Difference As shown above, the higher SDLT rate reduces your ROI from 5.7% to 5.5%, which may not seem significant on paper but can have long-term implications, particularly if you rely on rental income for cash flow. Breaking Even: A Longer Wait Post-Budget. The increase in SDLT also pushes back your breakeven point: 1. Pre-Budget SDLT (£27,500): Break-even in January 2030 (excluding ongoing costs). 2. Post-Budget SDLT (£40,000): Break-even in June 2030 (excluding ongoing costs). This extended timeframe can affect your ability to reinvest profits into other opportunities or cover unexpected costs. Plan Ahead: The Importance of Cash Flow Forecasting Given these changes, it’s critical to carry out a cash flow forecast to understand how the higher SDLT costs might affect your investment plans. This is particularly important if you’re purchasing a property that requires renovations. Ensuring you have sufficient cash reserves to carry out necessary improvements is essential for maintaining or increasing the property’s rental value. 1. Reassess Your Investment Strategy: With SDLT changes in mind, re-evaluate whether the ROI meets your expectations. 2. Forecast Your Finances: Create a detailed cash flow projection to account for the higher SDLT and any potential delays in your break-even point. 3. Plan Renovation Budgets Wisely: If your property requires refurbishment, ensure you have the funds available without relying on rental income in the early years. The SDLT changes highlight the importance of thorough financial planning in property investment. While they may impact your ROI and timeline, with careful preparation, you can still achieve your investment goals. For more details on the new SDLT thresholds and rates. 01273 441187

🏠 Roof Replacements: Repairs or Improvements? Understanding the Tax Implications 🛠️ Full Blog: https://ow.ly/vvfh50Ui193 With winter here, many property owners may face unexpected leaks that require significant fixes, like a roof replacement. While this can be a hefty expense, how it’s categorized—repair or improvement—can make all the difference when it comes to taxes. 💸 Here’s the key distinction: Repairs: Restoring something to its original condition (e.g., replacing a roof with like-for-like materials) is considered revenue expenditure, which is deductible from taxable profits. Improvements: Upgrading or enhancing the property (e.g., replacing wooden beams with steel girders) counts as capital expenditure, which has more complex tax treatment. HMRC defines repairs as “the restoration of an asset by replacing subsidiary parts of the whole asset.” For example: ✔️ Replacing an old roof with similar materials = repair (deductible). ❌ Adding structural upgrades or modern features = improvement (capital expense). Understanding this distinction is crucial for tax efficiency, especially for property investors. When in doubt, consulting with a tax advisor ensures compliance and maximizes financial outcomes. Here at PJCO we have a specialist property department, and if you need assistance starting your BTL journey, please feel free to book a free discovery call using the link: https://ow.ly/57UY50Ui191 01273 441187 #PropertyInvestment #TaxTips #RoofReplacement #Accountant

What the SDLT Changes Announced in the Budget Mean for You The recent budget announcement by the Labour government on October 30, 2024, brought significant changes to Stamp Duty Land Tax (SDLT) thresholds and rates. If you’re in the market for a property, these changes could have a notable financial impact, particularly if you’re an investor or purchasing a second home. For instance, purchasing a property valued at £500,000 will now cost you an additional £10,000 in SDLT, with this figure rising to £12,500 if you complete after April 2025. Let’s explore how these changes unfold and what they mean for you. The Changes in SDLT Explained The adjustments to SDLT were implemented immediately after the budget announcement, leaving buyers little time to plan. As detailed in our earlier blog on SDLT thresholds and rates (please see blog for more information), these changes introduce stepped increases based on the timing of your property transaction. For investors buying residential properties to let, the timing of your purchase plays a critical role in determining the SDLT you pay. From this we can see that your property completing on the 31st of October 2024, cost you an additional £10,000 in SDLT, then if it completed the day before! Please click on blog below to see examples. You can read our previous blog on Understanding the Latest Changes to SDLT: https://ow.ly/VBXL50UfNfj Unfortunately, the changes from the budget were implemented instantly which made it more difficult to plan for this change, however further steps can be taken to plan your investments. If you have a property in progress now, pushing for it to complete before 31st March 2025, will save you £2,500 in SDLT. Here at PJCO we have a specialist property department, and if you need assistance starting your BTL journey, please feel free to book a free discovery 01273 441187

📢 Key Changes to Stamp Duty Land Tax (SDLT): What You Need to Know Stamp Duty Land Tax (SDLT) applies to property or land purchases over a certain value in England and Northern Ireland. Recent updates following the Autumn Budget could significantly impact buyers, especially investors and non-UK residents. 🏠 Current SDLT Thresholds (until 31st March 2025): Residential properties: £250,000 First-time buyers: £425,000 (for properties worth £625,000 or less) Non-residential properties/land: £150,000 After 1st April 2025, thresholds will change: Residential properties will see a lower threshold of £125,000. First-time buyers will have a reduced threshold of £300,000 (for properties worth £500,000 or less). 📊 SDLT Rates for Individuals & Companies: Investors purchasing properties face different SDLT rates based on ownership structure: Individuals buying for investment are taxed similarly to limited companies. Higher rates on additional dwellings increased to 5% (up from 3%) as of 31st October 2024. Example Rates (Up to 31st March 2025): Threshold Limited Companies Individuals Up to £250,000 3% 0% £250,001 to £925,000 8% 5% £925,001 to £1.5M 13% 10% Above £1.5M 15% 12% Post-1st April 2025 Rates: Threshold Limited Companies Individuals Up to £125,000 5% 0% £125,001 to £250,000 7% 2% £250,001 to £925,000 10% 5% £925,001 to £1.5M 15% 10% Above £1.5M 17% 12% 🌍 Non-UK Residents: From 31st October 2024, the SDLT surcharge for non-UK residents purchasing additional property increased by 2%, raising rates to a range of 5%-17%. 🔍 How Does This Affect You? If you’re planning property purchases—especially as an investor—these changes could impact your costs and returns. Whether you’re buying as an individual or through a company, understanding the new thresholds and rates is essential for effective planning. Need help navigating these changes? Reach out to us to discuss your situation and create a tailored strategy! 01273 441187 #SDLT #StampDuty #PropertyInvestment #AutumnBudget #TaxPlanning https://ow.ly/gIWa50UfMig

Landlord’s Tax Implications When Tenants Depart When tenants leave a rental property, landlords often face questions about covering property expenses and whether tax relief can be claimed on costs incurred during the vacancy period. Understanding the tax implications of such situations is essential for maintaining profitability and compliance. Claiming Tax Relief on Expenses for Vacant Properties If your property is temporarily vacant while you search for a new tenant, certain expenses may still qualify for tax relief. These expenses must meet specific criteria: Eligible Expenses: Examples of claimable expenses include: 1. Council tax 2. Ground rent 3. Utility bills (electricity, gas, water) 4. Costs associated with getting the property to a lettable standard Conditions for Relief: 1. The expenses must be revenue in nature, meaning they are short-term expenditures incurred wholly and exclusively for the purpose of the rental business. 2. Relief is applied against the total rental income across all properties in the landlord’s portfolio while the property is vacant. 3. Exceptions: Properties let on an uncommercial basis (e.g., below-market rent) may not qualify for the same tax reliefs. What Happens if a Tenant Breaks Their Lease Early? If a tenant leaves before the end of their contract, the tax and expense obligations can differ slightly: Council Tax: The tenant is responsible for council tax until a new tenant is found. 1. Utility Bills: The landlord typically assumes responsibility for water rates, electricity, and gas during the vacancy. 2. Understanding these nuances ensures landlords manage costs effectively while staying compliant with tax regulations. Managing rental properties can come with challenges, but with the right guidance, landlords can ensure their business remains both efficient and profitable. Let us help you make the most of your investment. Navigating the tax implications of departing tenants can be complex, but our specialized Buy-to-Let (BTL) team is here to help. We provide tailored advice and strategies to optimize your tax position and rental income. If you have any questions or require any advice specific to your circumstances, please contact us at PJCO. Book a free discovery call: 01273 441187

🚨 Key Changes to Stamp Duty Land Tax (SDLT): What You Need to Know 🚨 Navigating the latest updates to Stamp Duty Land Tax (SDLT) can be tricky, but staying informed is essential—especially with the recent changes announced in the Autumn Budget. These updates could have a significant impact on: 🏠 Property buyers 🌍 Non-UK residents 💼 Investors At PJCO Accountants, we specialize in helping you understand how these changes might affect your property purchases and tax planning strategies. Whether you're buying your first home or managing a property portfolio, our expert team is here to guide you every step of the way. 💡 Let us simplify the complexities of SDLT for you. Contact us today to learn how we can help! 01273 441187 info@peterjarman.com #SDLT #TaxUpdate #PropertyInvestment #PJCOAccountants #TaxAdvice #StampDuty

Can the Budget Change in SDLT Affect Your Return on Investment? The recent adjustments to Stamp Duty Land Tax (SDLT) announced in the Labour budget on October 30, 2024, have brought significant implications for property investors. If you’re looking to make a residential property purchase, it’s important to consider how these changes may affect your return on investment (ROI). In a previous blog, we outlined the new SDLT thresholds and rates in detail: https://ow.ly/5BE550UfNKC Here, we’ll delve into how these changes can directly impact your financial outcomes and why it’s essential to reassess your investment strategy. What Does SDLT Mean for ROI? SDLT is a significant upfront cost for property investors, and any changes to this tax can impact both your ROI and cash flow. To better illustrate, here’s a comparison of two scenarios based on the same property value and rental income but with different SDLT rates. Example Scenarios Scenario 1: Pre-Budget SDLT Rates Property Value: £500,000 Expected Rental Income: £30,000 per year Expected Legal Fees: £3,000 SDLT Paid: £27,500 ROI: 5.7% The ROI Difference As shown above, the higher SDLT rate reduces your ROI from 5.7% to 5.5%, which may not seem significant on paper but can have long-term implications, particularly if you rely on rental income for cash flow. Breaking Even: A Longer Wait Post-Budget. The increase in SDLT also pushes back your breakeven point: 1. Pre-Budget SDLT (£27,500): Break-even in January 2030 (excluding ongoing costs). 2. Post-Budget SDLT (£40,000): Break-even in June 2030 (excluding ongoing costs). This extended timeframe can affect your ability to reinvest profits into other opportunities or cover unexpected costs. Plan Ahead: The Importance of Cash Flow Forecasting Given these changes, it’s critical to carry out a cash flow forecast to understand how the higher SDLT costs might affect your investment plans. This is particularly important if you’re purchasing a property that requires renovations. Ensuring you have sufficient cash reserves to carry out necessary improvements is essential for maintaining or increasing the property’s rental value. 1. Reassess Your Investment Strategy: With SDLT changes in mind, re-evaluate whether the ROI meets your expectations. 2. Forecast Your Finances: Create a detailed cash flow projection to account for the higher SDLT and any potential delays in your break-even point. 3. Plan Renovation Budgets Wisely: If your property requires refurbishment, ensure you have the funds available without relying on rental income in the early years. The SDLT changes highlight the importance of thorough financial planning in property investment. While they may impact your ROI and timeline, with careful preparation, you can still achieve your investment goals. For more details on the new SDLT thresholds and rates. 01273 441187

What the SDLT Changes Announced in the Budget Mean for You The recent budget announcement by the Labour government on October 30, 2024, brought significant changes to Stamp Duty Land Tax (SDLT) thresholds and rates. If you’re in the market for a property, these changes could have a notable financial impact, particularly if you’re an investor or purchasing a second home. For instance, purchasing a property valued at £500,000 will now cost you an additional £10,000 in SDLT, with this figure rising to £12,500 if you complete after April 2025. Let’s explore how these changes unfold and what they mean for you. The Changes in SDLT Explained The adjustments to SDLT were implemented immediately after the budget announcement, leaving buyers little time to plan. As detailed in our earlier blog on SDLT thresholds and rates (please see blog for more information), these changes introduce stepped increases based on the timing of your property transaction. For investors buying residential properties to let, the timing of your purchase plays a critical role in determining the SDLT you pay. From this we can see that your property completing on the 31st of October 2024, cost you an additional £10,000 in SDLT, then if it completed the day before! Please click on blog below to see examples. You can read our previous blog on Understanding the Latest Changes to SDLT: https://ow.ly/VBXL50UfNfj Unfortunately, the changes from the budget were implemented instantly which made it more difficult to plan for this change, however further steps can be taken to plan your investments. If you have a property in progress now, pushing for it to complete before 31st March 2025, will save you £2,500 in SDLT. Here at PJCO we have a specialist property department, and if you need assistance starting your BTL journey, please feel free to book a free discovery 01273 441187

📢 Key Changes to Stamp Duty Land Tax (SDLT): What You Need to Know Stamp Duty Land Tax (SDLT) applies to property or land purchases over a certain value in England and Northern Ireland. Recent updates following the Autumn Budget could significantly impact buyers, especially investors and non-UK residents. 🏠 Current SDLT Thresholds (until 31st March 2025): Residential properties: £250,000 First-time buyers: £425,000 (for properties worth £625,000 or less) Non-residential properties/land: £150,000 After 1st April 2025, thresholds will change: Residential properties will see a lower threshold of £125,000. First-time buyers will have a reduced threshold of £300,000 (for properties worth £500,000 or less). 📊 SDLT Rates for Individuals & Companies: Investors purchasing properties face different SDLT rates based on ownership structure: Individuals buying for investment are taxed similarly to limited companies. Higher rates on additional dwellings increased to 5% (up from 3%) as of 31st October 2024. Example Rates (Up to 31st March 2025): Threshold Limited Companies Individuals Up to £250,000 3% 0% £250,001 to £925,000 8% 5% £925,001 to £1.5M 13% 10% Above £1.5M 15% 12% Post-1st April 2025 Rates: Threshold Limited Companies Individuals Up to £125,000 5% 0% £125,001 to £250,000 7% 2% £250,001 to £925,000 10% 5% £925,001 to £1.5M 15% 10% Above £1.5M 17% 12% 🌍 Non-UK Residents: From 31st October 2024, the SDLT surcharge for non-UK residents purchasing additional property increased by 2%, raising rates to a range of 5%-17%. 🔍 How Does This Affect You? If you’re planning property purchases—especially as an investor—these changes could impact your costs and returns. Whether you’re buying as an individual or through a company, understanding the new thresholds and rates is essential for effective planning. Need help navigating these changes? Reach out to us to discuss your situation and create a tailored strategy! 01273 441187 #SDLT #StampDuty #PropertyInvestment #AutumnBudget #TaxPlanning https://ow.ly/vkM150UfMif