Keep Climbing The Property Ladder: Essential Lessons From A Property Investor

GoSimpleTax users are already tax-savvy. However, some of them are especially skilled at optimising their accounts so that they can dedicate more time to their business ventures and increase their take-home pay.

Property investor Lewis, for example, has been investing for the best part of eight years. In the last four, investing slowly started replacing his current employment. And in two more years, Lewis expects that it will become his main occupation.

Lewis uses our software to file his Self Assessment. We sat down with him recently to discuss his business success and the role that GoSimpleTax plays.

Look out for the opportunities

“For me, [the move to property investment] came about because there was a flat up for sale in my area,” explains Lewis. “I knew it was on the market for substantially less than what it could be realistically sold for.”

Lewis then goes on to describe the challenges of making a single purchase to becoming a property investor.

“The most difficult aspect was growing. If you don’t have a team in place that’s able to monitor properties, attend viewings and handle the day-to-day running of the business, then you’ll struggle to break through the threshold between landlord and investor.

“That’s why I pay people to travel the UK on my behalf to help secure deals. It isn’t sustainable for one person to constantly be surveying the market and then travelling across the country to view properties. You’ll really struggle.”

Invest as soon as you can

According to Lewis, 2020 is proving one of the best years for property investment in recent times – despite the economic uncertainty.

“First of all, the government has significantly reduced Stamp Duty, simplifying the purchasing of properties. What’s more, they’ve relaxed planning permissions.

“These changes will not only help those already in the industry grow, but also be really helpful for new investors to fund their first property.

“But before you buy, start by identifying useful individuals. Build a team, and leverage their time, knowledge and money. After all, Richard Branson got to where he is by employing great people.”

Know what you can claim on

“Initially, I had next to no idea about tax. GoSimpleTax really helped in that regard by breaking down what my responsibilities were and providing really straightforward guidance.

“We [property investors] used to get mortgage relief. Now the kind of expenditure I typically claim on are things like any property maintenance costs, such as allowable consumables, as well as office supplies and travel expenses.”

When asked what he’s specifically learned since using our software, understanding his expenditure and how to reduce his tax liability are two things that have stood out.

“Recognising what expenditure can be claimed back on, and ultimately knowing how to stay on the right side of the taxman, is key. From my perspective, having that guidance all there in front of you justifies the cost alone.”

Utilise Self Assessment tax return software

Lewis then concluded how software enabled him to focus on driving his property investment forward.

“I wanted to simplify the process as my other line of work is all done through PAYE and I didn’t have the time to do it myself.

“I started looking at ways to file online and found my way to the GoSimpleTax site. It broke down the Self Assessment tax return step by step, so I went with that.

“It was easy enough to use and I saw an improvement in almost every area of my accounting.”

About GoSimpleTax

Whether on your mobile device or computer, GoSimpleTax can give you complete oversight of your finances. By inputting your income and expenditure, and keeping accurate records, you’re able to stay compliant in the face of ever-changing legislation.

And for property investors like Lewis who are required to travel and incur regular business expenses while on the move, there’s the option to take photos of your expenditure too. You can then log your receipts instantly, leaving you with more time to focus on developing your business.

Ready to start taking your side hustle seriously? Sign up for our free trial today. Alternatively, if you have any questions about our software, speak to a member of our team.

Blog content is for information purposes and over time may become outdated, although we do strive to keep it current. It's written to help you understand your Tax's and is not to be relied upon as professional accounting, tax and legal advice due to differences in everyone's circumstances. For additional help please contact our support team or HMRC.