Choosing your Property & Construction advisers

Buying, investing, renting or building a property is a complex business and with it come complex tax issues. Although it is possible to navigate the property and construction tax minefield alone, it is best to seek professional advice. The HM Revenues and Customs (HMRC) is strict about timely payments on property and construction tax. If you fail to pay taxes on time, you will be subject to penalties and fines.

Property and tax

There are many tax issues related to property. These include Stamp Duty Land Tax (SDLT), Capital Gains Tax (CGT), VAT for construction and building work and taxes under the Construction Industry Scheme (CIS), rental income tax, to mention a few. There are also income tax issues related to buying investment property overseas and in the UK, as well as rental income, whether it is from renting a property or a room in your home.

Property & construction advisers

Professional advice and help is essential, when looking at complex issues, such as ownership structures for property investments, commercial property purchases, property finance as well as tax allowances and tax reliefs. These are all areas specialised property and construction accountants can provide assistance and expertise with. However, professional advice can also be invaluable for less complex property and construction issues. In any case, you must keep thorough and accurate records on a consistent basis.

There are many accounting firms that specialise in property and construction taxes and it is important to find the firm that best suits your needs. First, look at the experience the firm has in the property and construction business. What types of issues have they worked with? What type of clients do they specialise in? Second, get a break down in how the firm will charge you for their services and see whether that fits within your budget. If not, look for a small firm or an individual tax accountant, who specialises in property and construction accounts. In either case, it is important to find the firm that best suits your needs and budget requirements.

A professional tax firm can also help you navigate the somewhat complex HMRC’s
Construction Industry Scheme (CIS). This special scheme relates to contractors and sub-contractors and how to handle payments and tax liabilities. Navigating this scheme properly can help you save money.

Finding a qualified property & construction accountant

One way to find a qualified property and construction accountant is to look at the Institute of Chartered Accountants in England and Wales (ICAEW) web-site: www.icaew.com. The ICAEW is a professional organisation, with over 136,000 chartered accountants as members. This is a good place to begin looking for a professional firm or professional individual to help with your property and construction tax issues.

Also, if your property investment or construction business is large, you may need to undergo an annual audit. An audit needs to be undertaken by a registered accounting firm and to find one, seek out the Register of Satutory Auditors, which can be access here: www.auditregister.org.uk The HMRC guidelines will tell you whether you and/or your firm are subject to an audit.

Wilkins Kennedy have a team of specialist property & construction accountants and business advisers. Contact our experts to see how we can best help you and your business.