New research has revealed that a worrying number of landlords are taking a relaxed attitude towards seeking professional tax advice.
More than half of landlords in the UK aren’t using a professional tax advisor in any shape or form, and 40% only see one once a year according to figures released by an industry body.
Tax is not the most exciting part of owning and running a property business and seeking out a tax advisor is clearly not a high priority for the majority of UK landlords. Of those that do frequently see a tax advisor, most do so through the advice of a friend. Around 3% selected a tax advisor based on the professional advice of a broker.
These worrying figures suggest that many are not taking this issue seriously. Making tax-related errors can be costly, resulting in fines that are entirely avoidable. With proper advice from an experienced and qualified professional, landlords can be confident that they aren’t making any mistakes that could come back and bite them in the future.
The same study has also shown that 40% of landlords expect their mortgage costs to increase in 2020. Perhaps this explains the reluctance to invest in the services of a professional tax advisor. Any savings made in this way are likely to be short term wins at the expense of long-term stability.
A further interesting fact revealed by the study is that 55% of landlords who plan to grow their portfolio over the next 12 months are planning to do so as a private limited company – further illustrating the need for tax advisors.
Ian Bythell, Petty Real company director and Buy to Let expert, offers his advice:
“Landlords need to take their tax obligations seriously. Don’t be tempted to save a few pennies in the short term when in the future you might regret it. Buy to let is a fairly long-term investment and you need to get things right from the start.”
Any landlords out there who are concerned about their tax situation might consider talking to the experts over at Real Financial. There are lots of ways you can get in contact with them. For further information visit the website https://www.realfa.co.uk/.