Developer accounts

Developer accounts is a misleading title for specialist accounts for property traders.

In reality the term ‘property developer’ applies to a landlord or a trader who buys and sells property for profit.

The first step in working out what sort of accounts you need and what tax to pay is considering whether you are an investor or a trader.

If you are a buy to let landlord, then you are more than likely an investor and need landlord accounts.

If you buy off plan property to sell at a profit or buy property, add value by extending or refurbishing to sell a for a quick profit, it’s likely you are a trader and need our developer accounts service.

Developer accounts involve treating property as stock and paying income tax on profits rather than capital gains tax. Most disagreements with HM Revenue and Customs involve labelling your business as investment rather than trading and a key factor is establishing the correct tax and trading status for your business.

Getting this wrong can lead to expensive and time consuming investigations from the taxman.

Don’t forget that it’s possible to run an investment and trading business at the same time and that care is needed to separate the assets and finances of the two businesses to avoid the wrong tax treatment.

For an initial free consultation, email or call Yardleystar on 01766 780165 (During business hours)