Are You Being As Tax Efficient As Possible?

Are You Being As Tax Efficient As Possible?

Wouldn’t You Like To Be Paying Less Tax?

At LoftyAccounting, we do our utmost to keep our property management clients informed and empowered about the latest insights in accountancy and tax services.

Here are some simple yet valuable facts specifically for our estate and letting agent clients: 

VAT on Gifts for Customers 

As a VAT-registered estate agent or letting agent, did you know you can claim VAT on gifts given to customers? However, there’s a small catch! If the value of the gift exceeds £50, you’ll need to charge and pay the output VAT on this amount to HMRC.

It’s a great way to keep your customers delighted while being savvy with your VAT claims (by keeping it under £50!) This also applies if multiple gifts are given to the same person or business over a 12-month period.  

Business vs Personal Expenses  

When it comes to expenses that are both business and personal, it’s important to note you can only claim VAT on the business portion. This ensures compliance and maximises your legitimate VAT reclaim.

For instance, if you purchase a laptop used 70% for business and 30% for personal use, you can claim VAT only on the 70% business use. 

Employee Car Allowance and Mileage Claims

Are your employees receiving a car allowance? They might be missing out on an additional tax benefit!

Employees can claim 45p per mile for the first 10,000 miles and 25p per mile thereafter, against their income, to reduce their personal tax bill.

This is on top of the car allowance you provide as their employer.

Encouraging them to claim this can lead to significant tax savings and increased job satisfaction – let them know! 

Find Out More About Our Specialist Accountancy Advice  

We hope you find these insights useful in managing your accountancy and tax responsibilities more effectively. For personalised advice and support, especially tailored for property management businesses, don’t hesitate to reach out to our team at LoftyAccounting.