Jump to content

Accountant for self-build?


Recommended Posts

Not in my opinion, just make sure you keep all receipts, make sure they are VAT receipts fir materials so you can claim this back, make sure you are not charged VAT for materials and labour, this should be zero rated. I did however get a VAT specialist to do my VAT claim at the end of the build which was well worth the cost. 

Link to comment
Share on other sites

22 minutes ago, Mulberry View said:

A solicitor I spoke with a few weeks ago advised that we onboard an accountant for our self-build project as a priority. Is this accurate?

 

I think I've also read about some people creating a Ltd company for it too?

Why? Are we talking a single dwelling house that you will build for yourself?

 

Many businesses don't even have an accountant for day to day operations and merely use them to sign off the books at the end of the year for submission, my point is that why would you need one for building a house? You will have no income from it, just outgoings, keep a ledger if you want to keep track of expenses by all means. 

 

The only professionals you should employ should be engineers and maybe an architect!

 

You would literally be paying them more of your money, to tell you how much of your own money you have spent! 

 

As for the Ltd. company, I can see some minor benefits, I bought most things via my business and I used my business name, however it is an already established business and our business name, although engineering consultancy, sounds like it could be a building firm. When you call up and say I am calling from "business name here" it always carries more weight. Ever notice that manufacturers and merchants almost always ask where you are calling from - you always feel a bit silly saying, "Oh, just me, I am a private individual" I am certain they roll their eyes as soon as they hear that. I did that with Jewsons last month, called them up, I got trade pricing immediately and they didn't even think twice.

 

However, you could adopt a name to operate under, call yourself Mulberry Construction and use it for everything you do. Nothing wrong with that. Have all your invoices made out to that name too. I see no point in forming a business at all, bear this in mind, if you owned a business, you can buy certain things and write them off against tax, that is all very well, it can go down as an expense which comes off you profit line which reduces your tax liability, however, if your business doesn't make any money, because it is just to build your house, then how does the business receive it's funds? Presumably from you, so you are investing in your business with your own money, there is no tax liability on that, so you are not saving the corporation tax.

 

The only way it would be worth while is if you were thinking of forming a construction company that was also going to work on other projects and you could probably put all your materials through as "business expenses" which is actually fraud mind you. Another would be if there are plans that are essentially "business like" - i.e. build 2 houses sell one etc, then there will be some of the benefits above i.e. the materials could be deducted from profit of sale.

 

 

Edited by Carrerahill
Link to comment
Share on other sites

11 minutes ago, Mulberry View said:

A solicitor I spoke with a few weeks ago advised that we onboard an accountant for our self-build project as a priority. Is this accurate?

 

I think I've also read about some people creating a Ltd company for it too?

 
Self build or development...?? Ltd Co is a nightmare and you will end up with horrendous Director / personal tax liabilities if you get it wrong for building one house. 
 

If you are looking at the tax implications of multiple plots or selling off land then a good tax accountant who understands Capital Gains Tax would be advisable but you don’t need an accountant to do a self build. 

Link to comment
Share on other sites

OK, that's fine. The solicitor I spoke with had nothing to gain, but emphasised it very strongly. I think it was more from a tax-efficiency standpoint.

 

I do have a small Ltd company already (unrelated to this), an accountant for that and also a daughter who works in finance, so I guess we'll be fine.

Link to comment
Share on other sites

7 minutes ago, Mulberry View said:

OK, that's fine. The solicitor I spoke with had nothing to gain, but emphasised it very strongly. I think it was more from a tax-efficiency standpoint.

 

I do have a small Ltd company already (unrelated to this), an accountant for that and also a daughter who works in finance, so I guess we'll be fine.

See my edited reply above. 

Link to comment
Share on other sites

2 hours ago, Mulberry View said:

A solicitor I spoke with a few weeks ago advised that we onboard an accountant for our self-build project as a priority. Is this accurate?

 

I think I've also read about some people creating a Ltd company for it too?

 

No, assuming this is a standard self build you won't need an accountant for the project. 

 

I would recommend that you do speak to your accountant about the self build. Purely from the point of view of financing, as depending on your circumstances you might need to extract some wealth out of the existing LTD company to finance the self build. This may have been what the solicitor was referring to. But being a public forum nobody knows somebodys financial circumstances!

 

Best bet would be to keep the record keeping as simple as possible, I don't agree with using a business name, if you plan on using the DIY VAT scheme keep it all in your own name, as different names could raise questions. You really want this to go in and out with as little questions as possible.

 

Some people use an accountant at the end for a DIY VAT return, but many don't.

 

Open a few different trade accounts to achieve the best prices possible. Don't sweat the small stuff, but look around for big purchases.

 

Depending on whether your going for a self build mortgage you might need your accountant to provide some information on your income to support a mortgage application.

 

 

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...