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Where Taxpayers and Advisers Meet

Property Development First year accounts

Charliestaffs
Posts:4
Joined:Tue Nov 19, 2019 3:19 pm
Property Development First year accounts

Postby Charliestaffs » Tue Nov 19, 2019 3:34 pm

Hello
I have bought a residential property with a bit of land via company and planning to renovate the building and build 2 properties on land and sell it. I am going to hire an accountant when planning permission is granted to help me get finance however now the company first accounts are dues. I have a bit of experience working in an accountant office before however never dealt with property development accounts.
I would appreciate if anyone can recommend me a good book to learn about property development using company and accounting templates.
I am attempting to prepare my accounts and I have allocated all the property completion costs and survey/architects fees and land clearing/bit of demolition as WIP and a bit of admin costs like utilities bills which is all loss to be carried forward plus wip. Any pointers please if I am doing it wrong?

Regards
Charlie

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: Property Development First year accounts

Postby jerome.lane » Wed Nov 20, 2019 10:55 am

I am not an accountant but in my experience of property development projects, then you are taking the right approach already. If there is no income and you have recorded all of the costs, you should be fairly comfortable with what you have prepared. I could always see if one of our team here would review here for a small fee although I'm not sure this will be totally necessary if you are 100% comfortable with your numbers.
Jerome Lane
Tax Adviser
Telephone: 07943 005902

Charliestaffs
Posts:4
Joined:Tue Nov 19, 2019 3:19 pm

Re: Property Development First year accounts

Postby Charliestaffs » Wed Nov 20, 2019 2:04 pm

Thanks for your reply.
I have read some articles and it does look a right approach, however I believe I have overlooked a very big issue when paying the demolition company and tree removals £7500. I believe I should have processed it via CIS that I have not registered yet. I am going to register for CIS as nothing happened sofar this year only costs of plannings, however do I need to report the gross payments made already in previous year? I am sure an accountant will help me organise things know but I really want to be prepared and know the situation.

Thanks


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