Managing your finances as a property developer

How has the real estate industry changed since lockdown?

Many property developers have had to halt their work during COVID-19, with the uncertainty causing suppliers to close, contractors to stop working and projects to generally stall.

Whilst safety must always be the priority, the pandemic caused many who rely on property development and buy-to-let projects for their income to be left without much guidance on how and when things might begin to pick up. Hopefully, as things begin to reopen, the market will recover but in the meantime, what can property developers be doing to manage their finances and navigate the complex regulations of the industry?

What property development advice and support is currently in place?

Regulations have been put in place by the government to help both those in the property development industry and those looking to get on the property ladder. For those looking to sell their development, the stamp duty holiday is creating a financial incentive for buyers, boosting your property’s value without any compromise to the investor. This makes right now a great time to get your property on the market, due to the added bonus for buyers right now.

It is also hoped that the tax exemption will encourage buy to let landlords to expand their property portfolio, though the additional 3% surcharge does still apply to those buying additional residential housing.

Find out more about what measures are currently in place for property developers, here: https://bit.ly/3gCalyr

Why might a property developer need an accountant?

Just like with any other industry, property developers need to effectively manage their source of income, particularly at a time like this. If you are a buy to let landlord, finding an experienced buy to let accountant will help you to better manage your finances and ensure you are as tax efficient as you can be. This allows you to take control of your expenses, align with tax compliance and restructure your income to ensure your buy to let or property sales are as profitable as they can be. An accountant specialised in property development and buy to let will have a thorough understanding of the regulations and tax duties a developer faces.

Recent events have only amplified the importance of having a thorough understanding of your finances to ensure that they can adapt with these uncertain times. By having an accountant, this additional analysis and admin won’t take up any of your time. They can be your strategic financial sounding board, allowing you to focus on projects whilst they deal with bookkeeping, administrative tasks, business forecasting and management of incomings and outgoings.

Seamless accountancy for property developers

Tim Taylor and Co have worked as accountants for buy to let landlords and property developers in Swansea for a number of years. We offer tailored support for your business and help you plan for the future. We have a comprehensive knowledge of HMRC tax compliance and can help you avoid unnecessary tax bills or penalties.

We are certified partners of Xero, a revolutionary accounting software which allows you to have real-time access to your accounts, track your expenses, send out invoices and reduce the number of administrative tasks you need to do. This helps you to better understand your finances at any given time and, therefore, make the best decisions for your business.

Click here to learn more about Tim Taylor & Co.’s property development accountancy services.