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    We are open: Monday to Friday from 9am to 7pm and Saturday from 10am to 5pm

    18 - 20 East Street
    Bromley, BR1 1QU

    At Adiva Accountants all initial consultations are free of charge, so contact us today.
    For quality, competitive, and friendly accountancy services, please contact

    Adiva Accountants

    on 020 8313 9117 or via email at contact@adivaaccountants.co.uk.

    At Adiva Accountants we have the knowledge and the experience to provide you with the kind of accounting and tax services that you are looking for. At Adiva Accountants we look forward to discuss with you, without obligation, ways in which we may be able to help your personal or business needs.

    Alternatively, you can complete the contact form here and we will respond as soon as possible.

    Directors of Adiva Accountants have over 10 years’ experience of providing accountancy services. They have completed Bachelor and Masters degrees in Accountancy, Taxation and Business Management. Additionally, they have completed various accountancy qualifications such as ACCA, AAT, etc. So, they hold various accountancy degrees and qualifications up to chartered certified accountant.

    They can advise you on many other things, such as how to get the best price when you come to sell your business. Or on how to satisfy the banks conditions when you need help with finance. Or on how to keep creditors, insurers and suppliers happy, etc. Their expertise covers income tax, capital gains tax, corporation tax, VAT, payroll and many more.

    They can help with dealing with Inland Revenue investigations also.


    Parking

    There are parking bays right in front of the office, please be careful not to park in loading bays. Parking costs £1.90 per hour (maximum stay 2 hours). Alternatively, you can park in Sainsbury’s car park, which is just 1 minute walk away from the office. Parking there is completely free for 30 minutes and would be free for up to 2 hours provided you spend £10 in Sainsbury’s. Our office is at 18-20 East Street, Bromley BR1 1QU, which is opposite of O’Neill’s pub and TruGym.

    Alternatively, there is a big car park (1,500 spaces) in the INTU Bromley Shopping Centre (formerly The Glades). Parking costs £1.10 per hour for every day of the week. The shopping centre car park address is: The Glades, High Street, Bromley, BR1 3EF.


    By car

    If you drive to our office in Bromley, please enter this address in your Satnav 18-20 East Street, Bromley, BR1 1QU. From Orpington, you can take A232, then A21. From Beckenham, you can take A222. From Eltham, you can take A208B226A2212, then A21. From Lewisham and Catford, you can take A21. From Croydon, you can take A232A233, then A21. From Kent, you can take A21. From North and East London, you can take the Blackwell tunnel southbound, A2A2213A20South Circular RoadA2212, then A21. From West London, you can take South Circular Road to Catford, then A21.


    Public transport

    We are situated in Bromley East Street, which is served by Bromley South and Bromley North train stations, they are about 5-10 minute’s walk away. There are direct trains from London Victoria, London Bridge and London Blackfriars to Bromley South station. Bromley South is connected by direct trains to major towns around London and in Kent such as St Albans, Orpington, Sevenoaks, Ashford, Gillingham, and Ramsgate.

    The main bus routes serving Bromley High street are 61, 119, 138, 146, 208, 227, 246, 261, 269, 320, 336, 352, 354, 358, and 367.

    Chartered Certified Accountants       Call us: 020 8313 9117 contact@adivaaccountants.co.uk
    We're currently closed.We're open again on Friday (29th March 2024) from 9:00 am to 7:00 pm
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    Many people invest in property with the expectation of capital growth. They expect that the rental income from tenants will cover the mortgage costs and any outgoings. If you live in Croydon, Kent and London we, at Adiva Accountants in Croydon, can help you plan and structure the investment appropriately.

    Due to financial crises, the stock market has had its ups and downs. Additionally, many people have lost the confidence in pension funds as a means of saving for the future. At the same time the bank interest on savings have been at lowest for decades. Therefore, it is not at all surprising that investors have looked elsewhere.

    The UK property market, despite its ups and downs, has proved over the long-term to be a solid investment. As a result of this, buy to let market has seen a massive expansion. However, the gross return from buy to let properties is not as attractive as it once was. Investors need to take a view on the likelihood of capital appreciation exceeding inflation. They need to consider the fact that mortgagee interest rates have been at a low level for a long period of time, and will rise in a near future.nn

    Do:

    • think of your investment as medium to long-termn
    • do your sums carefullyn
    • research the local marketn
    • consider decorating to a high standard to attract tenants quickly

    Don’t:

    • purchase anything with serious maintenance problems
    • think that friends and relatives can look after the letting for you – you’re probably better off with a full management service
    • cut corners with tenancy agreements and other legal documentation

    Your property
    Bear in mind that investing in a buy to let property is not the same as buying your own home. Therefore, you may wish to get an agent to advise you of the local market for rented property. You need to find first what type of property is in higher demand and where, such as properties close to schools or transport links.

    Letting Agents
    You need to be aware that letting property can be very time consuming and inconvenient. Tenants have rights and will expect a quick solution if the central heating breaks down over the weekend or bank holiday. Also, would you want to advertise the property and show around prospective tenants yourself. There is always the option of hiring a letting agent to deal with all of this for you.

    Tenancy agreements
    A tenancy agreement will ensure that the legal position for both sides is clear.

    Rental income tax
    Income tax will be payable on the net of rents received less allowable expenses. Currently allowable expenses include mortgage interest, repairs, agent’s letting fees, and an allowance for furnishings. The Summer Budget changes will impact on the allowable expenses for landlords, particularly the amount of mortgage interest allowed.
    If you live in Croydon, Kent and London we, at Adiva Accountants in Croydon, can help you structure your investment appropriately.

    In the coming years, the amount of income tax relief landlords can get on residential property finance costs will be restricted to the basic rate of income tax. Finance costs include mortgage interest, interest on loans to buy furnishings, and finance fees incurred when taking out or repaying mortgages or loans. There is no relief available for capital repayments of a mortgage or loan.

    Landlords instead of deducting their full financial costs will receive a basic rate reduction from their income tax liability for their finance costs. The government will introduce this change gradually from April 2017, over four years. The restriction in the finance cost relief will be phased in as follows:

    • in 2017/18, the deduction from property income will be restricted to 75% of finance costs. The remaining 25% being available as a basic rate tax reduction
    • in 2018/19, 50% finance costs deduction and 50% given as a basic rate tax reduction
    • in 2019/20, 25% finance costs deduction and 75% given as a basic rate tax reduction
    • from 2020/21, all financing costs incurred by a landlord will be given as a basic rate tax reduction.

    The above restriction will not apply to landlords of furnished holiday lettings.

    If you live in Croydon, Kent and London we, at Adiva Accountants in Croydon, can help you understand the impact that loan interest restriction will have in your rental income.

    Replacement of furnishings

    From April 2016, all landlords of residential dwelling houses are allowed to deduct the costs they actually incur on replacing furnishings, appliances and kitchenware in the property. This relief for the cost of replacing furnishings is available to furnished and unfurnished properties too. Before this change, it was possible to claim wear and tear allowance for furnished properties. But there was no tax relief for the replacement of furnishings in partly furnished or unfurnished properties.

    Examples of eligible capital expenditure are:

    • furniture
    • furnishings
    • appliances (including white goods)
    • kitchenware

    but would exclude items which are fixtures.

    However, if there is an improvement on an old item, the relief is restricted to the cost of an equivalent item. This deduction will not be available for furnished holiday lettings, or where rent-a-room relief is claimed.

    The withdrawal of Wear and tear allowance

    From April 2016, the wear and tear allowance which was available to landlords of fully furnished properties has been abolished.

    If you live in Croydon, Kent and London we, at Adiva Accountants in Croydon, can help you understand how the changes in reliefs can impact your rental income.

    If you sell the property, the capital gains tax (CGT) will be payable. The tax will be payable on the disposal proceeds less the original cost of the property, certain legal costs and any capital improvements made to the property. Before the tax the gain will be further reduced by any annual exemption available. The resulting gain is then taxed at either 18% (part of gain which falls within the basic rate band). Or 28% (part of gain within higher and additional rate band), or a combination of the two rates.

    From 6 April 2016, a reduction of CGT rates is introduced generally from 28% to 20% (the higher rate band) and from 18% to 10% (the basic rate band). However, in regard of the gains arising on the disposal of residential property that do not qualify for private residence relief, there is no change (28% and 18% rates will continue to apply). CGT is payable on 31 January after the end of the tax year in which the gain is made. From April 2019, on the disposal of residential property a payment on account of any CGT due will be required to be made within 30 days of the completion of the disposal. The above is not required for gains on properties which are not liable for CGT due to Private Residence Relief.

    Student lettings

    If you have children at college or university, then buy to let may be a good option. However, it is important that the arrangement is structured in the right way. Not the parent, but the student should purchase the property (with the parent acting as guarantor on the mortgage). We will describe below the advantages of this arrangement.

    Advantages

    First, you will provide your child with somewhere decent to live in a cost-effective way. Rental income on letting spare rooms to other students should be sufficient to cover the mortgage repayments and other costs.

    Second, the amount of rental income chargeable to income tax is reduced by ‘rent a room relief’. This relief is increased to £7,500 per annum from 6 April 2016 (was £4,250 for 2015/16). Please note that if you claim this relief, no expenses are tax deductible. Alternatively, if it is more beneficial, expenses can be deducted from income under normal letting rules.

    Third, if the property will be the child’s only property, it will be regarded as their main residence and it will be exempt from CGT on its eventual sale.

    If you live in Croydon, Kent and London we, at Adiva Accountants in Croydon, can help you in relation to capital gains and how to minimise your tax liability.

    Another type of property investment to consider is furnished holiday letting (FHL). This form of letting is short holiday lettings as opposed to letting for the residential market. There is a favourable tax regime for furnished holiday letting accommodation. And the rules for allowable expenditure are more generous too. It includes qualifying property located not only in the UK, but anywhere in the European Economic Area (EEA). However, certain conditions have to be met in order to qualify for FHL treatment. These conditions include the property being available for letting for at least 210 days in each tax year, and being actually let for 105 days. It will be possible to make an election to keep the property as qualifying for up to two years even though the condition may not be satisfied in those years. This is allowed if there is a genuine intention to meet the actual letting requirement. This is particularly important to preserve the special CGT treatment of any gain as qualifying for the lower CGT rate of 10% where the conditions for Entrepreneurs’ Relief are satisfied. Any losses arising in an FHL business are not allowed to be set against other income of the taxpayer. These losses can only be offset against profits of the same or future years in each relevant sector.

    Another advantage is that you will be able to take a holiday in your own property, or make it available some of the time to your family or friends. If you do that, then care would need to be taken to adjust the level of expenses claimed to reflect this private use.

    FHL Disadvantages

    Holiday letting will usually have higher agent’s fees, advertising costs, and maintenance fees (e.g. more regular cleaning).

    You could find yourself spending a lot of time sorting out problems, as owning a holiday property may be more time consuming than you think.

    Any advice and plan for property investment must take into account your circumstances and aspirations. Seeking professional advice can help to sort out potential problems and structure the investment correctly.nIf you live in Croydon, Kent and London we would be happy to discuss with you, buy to let or other investments. Please contact us at Adiva Accountants in Croydon for more detailed advice.n

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