Tax Accountant Exeter: Frequently Asked Questions

Taxable rental profit is generally rental income less allowable revenue expenses, subject to the special rules for residential finance costs. The calculation should distinguish repairs from capital improvements, identify expenses incurred wholly and exclusively for the property business, allocate costs correctly between jointly owned properties and carry forward eligible losses. Mortgage capital repayments are not deductible, and individual residential landlords normally obtain a basic-rate tax reduction for qualifying finance costs rather than a full deduction from rental income. The result must be based on records for the correct tax year and ownership share.

A UK residential property disposal with Capital Gains Tax due must normally be reported and paid within 60 days of completion. The gain should be calculated using the acquisition cost, disposal proceeds, incidental costs, qualifying enhancement expenditure, ownership share and available reliefs. A UK resident who is already within Self Assessment may also need to include the disposal on the annual return. A non-UK resident must report disposals of UK land even where no tax is payable. The deadline is confirmed in HMRC's UK property Capital Gains Tax reporting guidance.

Each co-owner calculates and reports their own share of the gain or loss. The calculation should reflect the beneficial ownership, each person's acquisition history, allowable costs, periods of occupation and personal relief position. One owner's exemption, losses or residence history cannot simply be transferred to the other owner. Separate UK property CGT returns may therefore be required, followed by separate entries on each owner's Self Assessment return where applicable. The legal title is important, but the adviser should also check whether the beneficial ownership has ever differed from the registered title.

No, incorporation is not automatically beneficial and should be reviewed before any transfer occurs. The transaction can trigger Capital Gains Tax, Stamp Duty Land Tax, refinancing costs, lender consent issues and a change in how profits and future sale proceeds are taxed. Incorporation relief may be available only where the statutory conditions are satisfied, and the existence of a genuine property business cannot be assumed from the number of properties alone. The long-term Corporation Tax and extraction position must be compared with the immediate transaction taxes and commercial costs.

A landlord living overseas remains taxable on UK rental income and may also fall within the Non-Resident Landlord Scheme. Unless HMRC authorises gross payment, a letting agent—or in some cases a tenant—may have to deduct basic-rate tax from the rent. Approval to receive rent gross does not remove the obligation to calculate the actual taxable profit or submit a UK tax return where required. Residence, treaty position, ownership and foreign reporting also need to be considered. Individuals can apply using HMRC's NRL1 gross-payment application guidance.

No, the correct mix depends on both the company and the individual. The review should consider available company profits, Corporation Tax, employer and employee National Insurance, other personal income, pension strategy, student loans, cash requirements, employment allowance, benefits, director loan balances and whether dividends can lawfully be paid from distributable reserves. A calculator may compare headline tax costs, but it cannot confirm that a dividend is legal or that the extraction plan fits the company's wider commercial position.

A director's loan account records money moving between the director and the company that is not salary, dividend, expense reimbursement or repayment of an existing balance. An overdrawn account can create company tax, beneficial-loan and reporting consequences, particularly where the director is also a shareholder. The balance must be reconciled to the accounts and reviewed before dividends, repayments or write-offs are recorded. HMRC's director's loan guidance outlines the basic company and personal responsibilities.

A business must normally register as a CIS contractor before paying subcontractors for construction work. It must consider employment status, verify subcontractors, apply the deduction rate supplied by HMRC, issue payment and deduction statements, file monthly returns and retain appropriate records. A business outside the construction industry can also be treated as a contractor if its qualifying construction expenditure exceeds the statutory level. The core duties are set out in the official CIS contractor guidance.

No, CIS deductions are advance payments towards the subcontractor's eventual tax and National Insurance position. A sole trader or partner reports the gross income and claims credit for deductions through Self Assessment. A limited company normally sets qualifying CIS deductions against PAYE liabilities through payroll reporting rather than deducting them from Corporation Tax. Missing deduction statements, incorrect business details and a mismatch between invoices and contractor reports can delay or prevent credit, so monthly reconciliation is important.

The VAT position should be reviewed before taxable turnover exceeds—or is expected to exceed—the registration threshold, and whenever the nature of supplies changes. The current compulsory registration threshold is £90,000 of taxable turnover, measured under the statutory backward and forward-looking tests. Voluntary registration may be useful below the threshold, but the commercial effect on customers, pricing and input-tax recovery must be considered. Hospitality, property, land, international services and mixed taxable or exempt activities often require more than a turnover check. See HMRC's VAT registration guidance.

Advice should be taken before the asset or money is transferred. The review may need to consider the donor's estate, exemptions, the seven-year rules, gifts with reservation, pre-owned asset provisions, Capital Gains Tax, Stamp Duty Land Tax, trust consequences and the recipient's position. A transfer at undervalue can itself contain a gift. The fact that no immediate Inheritance Tax is payable does not mean the transaction has no tax effect. HMRC's Inheritance Tax rules on gifts provide the general framework.

No, a property gift does not necessarily remove the value from the estate immediately. The gift may remain relevant for seven years, and the property can remain within the estate if the donor continues to benefit from it without paying an appropriate market rent. Capital Gains Tax may arise at market value even where no money changes hands, and Stamp Duty Land Tax can be relevant if debt is assumed. Ownership, occupation, mortgage arrangements and the donor's continuing use should all be reviewed before the transfer documents are signed.

Yes, a tax-only second opinion can be provided without taking over the routine accounts or compliance work. This may be appropriate for residence, a property transaction, company restructuring, HMRC correspondence, a disclosure, a substantial relief claim or a proposed business sale. The scope should identify the precise question, documents being reviewed, assumptions and whether the opinion is advisory only or includes implementation. Where necessary, the existing accountant can remain responsible for the accounts and returns while using the specialist conclusion.

No, the practice supports clients across Exeter, East Devon, Mid Devon, Teignbridge and elsewhere in the UK. Most assignments can be handled through secure document exchange, telephone and video meetings. Local appointments can be arranged where the nature of the work justifies them, particularly for substantial advisory matters or HMRC meetings. The service mix reflects the city’s professional, healthcare, university and technology economy and the surrounding districts' property, tourism, trades, manufacturing, family-business and rural profiles. The ONS Exeter local profile provides wider context for the area.

A short factual summary and any deadline are sufficient for the first enquiry. State whether the matter concerns an individual, property, company, estate or HMRC; identify the tax year or transaction date; explain what has happened; and mention any filing, payment or response deadline. Sensitive documents are not required through the initial form. After reviewing the message, we confirm whether further information is needed to quote, whether a paid initial review is appropriate and which records should be supplied securely.

The fee is agreed from the defined scope, not from a generic package name. Relevant factors include the number of taxes, years, people or entities involved; the condition of the records; the technical questions; calculations and research required; urgency; the form of written advice; and the amount of HMRC correspondence or representation. The quotation should state what will be prepared, what information the client must provide, key exclusions, payment terms and whether implementation or post-submission correspondence is included. No substantive work should begin until the scope and fee are accepted.