"All these new tax measures, combined with mounting legislation, is putting landlords under huge pressure. It can be overwhelming to keep up and failure to do so, can lead to fines and loss of licence"
Recent research shows that a third of buy-to-let landlords in the UK do not understand their ability to offset mortgage interest payments against tax is being scaled back by the Government. A further one in ten say they are planning to exit the letting market entirely as a result of this and other changes.
The Government announced in 2015 that the amount that landlords can deduct for mortgage interest would be reduced, meaning that by 2020, only 20% of any landlord’s mortgage interest would be tax deductible. The research also shows that most landlords surveyed see this tax measure as detrimental to their business.
Paul Oxley, Managing Director of Visionbase Software comments: “Most landlords will be looking at ways to minimise the tax changes to protect their profits. While the most obvious plan is to rise rents, other options open to landlords include transferring property ownership into a corporate structure, or to a partner who pays a lower income tax rate.
All these new tax measures, combined with mounting legislation, is putting landlords under huge pressure. It can be overwhelming to keep up and failure to do so, can lead to fines and loss of licence.
To help landlords manage the raft of changes for their property portfolio, our advanced property management software Decorus for Sage includes features to help streamline landlord’s administrative workload, manage properties cost-effectively and has an accounting engine powered by Sage 50.
The unique Sage integration offers landlords the ability to easily generate financial reports, forecast future income & expenditure accurately and budgeting for maintenance work. We continue to develop the software and our latest addition Decorus Online is a web-based portal giving users the ability to view their Decorus for Sage data on any device, with an internet connection 365/24/7.
As Decorus Online is a cloud-based solution, it takes the stress from the office, allowing landlords and tenants access to important information like tenancy agreements and statements as well as being able to log work orders.
Decorus for Sage caters to residential and commercial lettings, student accommodation providers, estate management and much more. The flexibility in Decorus makes it adaptable to solve a wide spectrum of problems from calculating service charge budgets for block managers, to streamlining paperwork and simplifying client accounting for letting agents.”
