Summer is officially over and we are entering the busiest part of the year for an accountant, its “Tax Season”.
There have been a lot of changes at Companies House and as a result, Confirmation Statements need additional information and confirmation of changes from you as directors. Please read your emails from our Admin Team carefully and respond as fully as possible.
We have been keeping up with all the chat around FHL tax reform and will release a separate newsletter on that in early October.
AND then there’s the Budget….
The tax community are in no doubt that there will be changes announced which will have an impact on landlords and business owners. We will review the impact those changes will have on our clients and will send out a Budget comment shortly after Wednesday 30th October.
Tax & Accounting
Self-Assessment Tax Returns Financial Year 23/24
If we complete your Self-Assessment tax return You should by now have received your reminder to send in all information needed for us to complete your Self-Assessment Tax Return for the period 6th April 2023 – 5th April 2024.
The deadline for submission and payment to HMRC is 31st January 2025
Please complete your online Self-Assessment information form (the link is in the email) and send all relevant information back to us as soon possible to ensure we submit your tax return and let you know what your tax liability will be ahead of the final deadline.
If we are not currently engaged to complete your Self-Assessment tax return and you think you may have some tax liability, please contact your client manager.
Have you sold or about to sell a Buy-To-Let property?
You must report and pay any Capital Gains Tax due on UK residential property within 60 days of selling the property to HMRC. If you are non-UK resident this applies to sales of UK land also.
Note: These rules apply to property owned individually. BTL property owned by a limited company is subject to different rules.
You will need the following information:
- address and postcode of the property
- date you got the property
- date you exchanged contracts when you were selling (or ‘disposing’ of) the property
- date you stopped being the property’s owner (completion date)
- value of the property when you got it
- value of the property when you sold or disposed of it
- costs of buying, selling or making improvements to the property
- details of any tax reliefs, allowances or exemptions you’re entitled to claim
- property type, if you’re not a resident of the UK
If your property was jointly owned
You must report your own gain or loss. Different rules apply if you give a UK property to your spouse, your civil partner, or to charity.
Please speak to your client manager. We can calculate your CGT liability, taking into account all exemptions and relief you are entitled to and complete the return.
Declaration of Trust and Form 17
If you have an agreement regarding the beneficial ownership of your investment property, whether between joint investors or spouses/civil partners then you must ensure that a Declaration of Trust AND Form 17 have been completed and sent to HMRC to gain the tax benefit.
Speak to your client manager if you need any guidance.
VAT Thresholds
From 1st April 2024, You must register for VAT if, by the end of any month, your total VAT taxable turnover for the last 12 months (not your last financial year) was over £90,000.
Note:
Residential property income and some Commercial property income is VAT exempt which means even if you exceed the VAT threshold you are exempt from registering.
Who does it affect?
- Most trading businesses except for those where exemptions are applied (e.g. education and training, healthcare).
- Furnished Holiday Letting income is deemed a trade and therefore does not fall within residential income and is NOT exempt.
- Some commercial property is opted to VAT so if this is the case then the VAT threshold applies.
Mortgages
Having seen the first Base Rate cut since 2020 back in August, the mortgage market has started to show some positive improvements such as; regular rate decreases across residential, BTL and commercial mortgages, enhanced criteria, increased affordability calculations, higher LTV’s.
As many experts predicted, last week saw the Monetary Policy Committee choose to hold Base Rate at 5.00%, with just 1 of the 9 members voting for a second rate cut in a row. The outlook is promising though.
Whilst lenders do monitor Base Rate, when it comes to deciding what mortgage rates they offer, these are based on the UK SWAP rates. These are a set of rates that lenders pay to obtain funds from other Banks and Financial Institutions over a fixed period of time, typically 2 or 5 Years.
The SWAP rates are based on what the market predicts Base Rate to be in “x” number of Years.
The main SWAP rates that concern mortgage providers are the 2 and 5 Year rates, hence why the most common mortgage products come with a 2 or 5 Year initial incentive period.
The table below shows the outlook this time last year, compared to the more positive outlook today. This hopefully demonstrates the trajectory we can hope to see rates follow over the next 2-5 Years.
| Years | Current Rate as of 25/09/2024 | Rate as of 26/09/2023 |
| 2 | 3.841% | 5.012% |
| 3 | 3.699% | 4.738% |
| 5 | 3.581% | 4.419% |
With residential mortgage rates as low as 3.74% at the time of writing, and BTL mortgage products available at 3.49% in personal name and 4.69% for Ltd Companies (with reasonable fees of 3% or less), the market is certainly in the best place it has been for 2-3 Years.
While we cannot predict the future with absolute certainty, the current market trajectory presents an optimistic scenario for those seeking to remortgage, purchase new property, or expand their investment portfolios. Our mortgages team are available to guide you through the process, ensuring you make informed decisions tailored to your specific circumstances.
Which leads us onto some exciting news for our existing Tax and Accounting Clients…
Do you have mortgages due for renewal in 2025?
Are Base Rate decreases making you question your Mortgage preferences?
Would you like a chat with our property finance expert to discuss your upcoming mortgage plans?
As an existing Calculated Tax customer, you already benefit from a £100 discount on our broker fees, with the added benefit of unlimited regular property finance advice.
For remortgages, if the research confirms that a rate switch with your current lender is the best option, this will be submitted on your behalf free of charge, but you benefit from peace of mind, knowing that you have secured the best product for you and that you will be informed 6 months in advance of the next rate expiry to avoid any nasty reversion rates.
2025 Fee Changes for Tax & Accounting Clients
From 1st January 2025 our Mortgage Broker Fee structure is changing for our existing Tax & Accounting clients.
If you intend to purchase/remortgage properties in 2025 we would ask you to complete our “2025 Mortgages Questionnaire” before the 1st January 2025.
Take a look at our comparison fees below.
| Number of Properties | Standard Fee Per Property | 2025 Fee Structure(Current Tax & Accounting Clients)Per Property |
| 1 | ||
| Residential | £295 | £145 |
| Buy-to-Let | £495 | £345 |
| Commercial & Bridging | £595 | £445 |
| 2-4 | ||
| Residential | £295 | No Fee |
| Buy-to-Let | £495 | £295 |
| Commercial & Bridging | £595 | £395 |
| 5+ | ||
| Residential | £295 | No Fee |
| Buy-to-Let | £495 | £195 |
| Commercial & Bridging | £595 | £195 |
Notes:
- Discretionary discounts may apply to current standard fees.
- If a lender declines to offer, we carry the fee over to the next lender. We don’t charge twice.
Your client manager and mortgage broker are available to discuss your tax or mortgage questions by phone or email, and by Teams meeting on request.
Contact Us:
| Tax & Accounting | 01904 948860 Option 1 | tax@calculateduk.com |
| Mortgages | 01904 948860 Option 2 | mortgages@calculateduk.com |
| Commercial Mortgages | 01904 948860 Option 2 | commercial@calculateduk.com |
