Buying property? Consult your accountant!
Getting on the property ladder is tough for most people: but if you are self-employed, you face a series of extra hurdles if you want the approval of the mortgage lenders. Even renting can be tough, unless you can verify your income. Sole traders and small businesses also have to consider the costs of their business premises, or the costs of running a business out of their home. There is a lot to consider! Thankfully, we can guide you through the pitfalls - and the positives - of owning or leasing a property while self-employed.
Claiming tax relief on business premises
Many self-employed workers will use their home as a base, and work on clients' sites or on the road. However, others require a fixed base to call their own, such as an office or shop. A key decision business owners must make is whether to buy (under leasehold) or rent their business premises; or whether to use their own home instead.
Depending on your own arrangements, you may be able to claim for some or all of your premises costs. Hiring a chartered accountant can ensure that you are claiming everything you are entitled to, and not paying over the odds for your work space.
If you rent, you can claim some - or all - or your rental costs back. You can also claim a portion of your power, water and internet costs, plus any associated business costs and taxes. You can't offset the cost of buying a business premises, but you can get some tax relief for building maintenance and renovation, and also for integral systems like hot water and heating.
Buying a home when self-employed
As well as assisting with your business rates and costs, your accountant can support you when you are buying your first property. Self-employed people are often seen as high risk by mortgage lenders, unless they can provide at least two years of self-assessment returns and details of their business profits. An accountant can prepare all the necessary documents for you, so you can win over the lender and secure that mortgage.
If you need an accountant in Sussex who can support you with a property purchase or help you with your business premises costs, get in touch with our Business Services Partner Robert who can discuss the best path with you:
Tel: 01825 763366
The Chancellor announces the Autumn Statement. What does it mean for you?
The Chancellor Jeremy Hunt, has presented his Autumn Statement which he says is focused on growing the economy through reducing debt, cutting taxes and rewarding work. He stated that, ‘Our plan for the British economy is working, but the work is not done.’ This article will provide a summary of the measures announced. Do look out for a full report that will be sent to our newsletter subscribers in the coming days.
A guide to capital gains tax exemptions and the family home
A valuable relief exists on the sale of the family home, but in certain situations careful planning is required to ensure that the relief is obtained. The capital gains tax (CGT) exemption for gains made on the sale of your home is one of the most valuable reliefs from which many people benefit during their lifetime. In this article we look at the operation of the relief and consider factors that may cause it to be restricted.
Sign up to receive our private content
straight to your inbox