The property market has seen fantastic growth in recent years attracting many people to invest in buy- to-let properties and particularly HMO’s (house in multiple occupation). We work in partnership with one of the largest property franchises in the UK by providing accountancy support to their members across the country.
Our client came to us on the recommendation of another franchisee who we provided a similar service to.
Initial meeting
During the meeting we discussed their options in terms of the best structure for setting up the new venture with full consideration for the changes of tax rules relating to buy-to-let property that have recently occurred, such as the changes in tax reliefs and increased stamp duty for those buying second homes.
Accountancy set up
The client decided to purchase the property through a limited company which we set up on their behalf and then implemented a robust accounting system to ensure the client had a clear picture of their financial position. We provided ongoing bookkeeping to ensure records were kept up to date and accurate.
Financial reporting
As part of a franchise the business had to produce accounts not only for Companies House and HMRC but also for the franchisor. We ensured that all regulatory and statutory requirements were met while fulfilling their reporting obligations to the franchisor.
Tax planning
Our tax specialists have a wealth of experience in tax planning and were well placed to ensure that the client paid the minimal and correct amount of tax. This involved looking at other businesses owned by the client to understand how they would interact with the franchise business. In addition, we were also able to advise on the personal tax planning opportunities to the client as well as looking at issues such as Capital Gains tax and Inheritance tax.
We have removed the client's name from this case study to protect their identity.