Landlord Accountant UK | Property Tax Experts
Accounting Challenges for Landlords
As a landlord, you are probably facing multiple challenges due to the higher interest rate, tougher government regulation on landlords in regard to tenant’s rights, and restrictions on claiming on mortgage interest expenses. Furthermore, the capital gain tax cut in Autumn Budget 2025 has made it very painful for landlords to exit the market. Higher tax rates, higher interest rate, and tougher regulations are making the property business less profitable. As the UK government is targeting landlords and property investors by increasing taxes on business profits and capital gains, therefore. Hiring a property accountant can help you to save time and maximise your wealth.
Why Tax Care for Landlords?
Property Finance Management for All Landlords
UK landlord tax is complex and getting it wrong is expensive. Tax Care specialises in property accounting for:
Residential Buy-to-Let (BTL) - single properties and growing portfolios
Commercial property - offices, retail, and mixed-use units
Holiday lets & Airbnb - post-FHL abolition advice
Our Landlord Solutions: Full Service List
Why Choose Tax Care? From HMRC Registration to Property Sale
HMRC Registration
Self-assessment setup, agent authorisation, and Corporation Tax registration for limited companies.
Main Residence Election
Nominate your tax-free home across multiple properties to maximise CGT exemption.
Accounts Preparation
Full income, expenses, and profit accounts with maximum allowable claims, including repairs competitors miss.
Tax Returns
SA filing, rental income liability calculations, and payment deadline management.
Furnished Holiday Lets (Post-April 2025)
Transition planning and tax advice following the abolition of the FHL regime.
Rent-a-Room Scheme
Guidance on using the £7,500 tax-free annual allowance for letting furnished rooms in your home.
Selling Property
CGT calculations, relief identification, and mandatory 60-day CGT returns — fixed fee £300.
Section 24 Relief
Modelling 20% tax credit (personal) vs 100% mortgage-interest deduction (limited company).
SPV & Holding Companies
Incorporation advice plus SDLT and CGT transfer cost forecasting.
MTD for Income Tax
Digital records, quarterly HMRC updates, and agent filing from April 2026.
Making Tax Digital 2026: What Landlords Must Know
From April 2026, landlords with £50,000 or more in qualifying rental income must use MTD-compliant software to maintain digital records, submit quarterly updates to HMRC within 30 days of each quarter-end, and file a final year-end declaration by 31 January — replacing the traditional Self Assessment return. This threshold then phases down to £30,000 in 2027 and £20,000 in 2028. Non-compliance can trigger penalties of £100 or more per missed update. A specialist landlord accountant handles software setup, bridging solutions (including Excel-to-HMRC integrations), and all filings on your behalf.
Key MTD requirements at a glance:
- Maintain all income and expense records digitally using HMRC-approved software — manual SA-only records will no longer be sufficient.
- Submit four quarterly summaries each year: April–June (due 31 July), July–September (due 31 October), October–December (due 31 January), January–March (due 30 April).
- File a final year-end declaration which replaces the traditional Self Assessment return.
- Exemptions are rare; as your registered agent, Tax Care can file all submissions on your behalf.
Importance of Accountants for Landlords
If you are planning to purchase a buy-to-let property or those who already have a property portfolio might benefit greatly from hiring a specialised property accountant. A specialised property accountant will be familiar with HMRC and Companies House reporting procedures, the best approach to manage accounts, and property taxes. A landlord accountant will not just prepare your accounts and file it but also help you to maximise your wealth by professional tax planning and liaise with the mortgage advisors to get the best rates.
Being a director of a limited business means that you have to be updated on all legal requirements. However, landlords that have access to up-to-date accounts can use this information to their advantage. This information can help landlords understand if they are running at a profit or a loss. In addition to this, landlords can keep track of any late payments and ensure their receipts and bills are always in order. It can be difficult for landlords with a large portfolio to keep track of all outgoings and income. This makes the assistance of property accountants even more helpful and time-saving.
Having an accountant for landlords are useful as they can claim more allowable expenses. Some landlords may not be aware of the expenses they can claim. A specialist property accountant will guide a landlord to ensure all expenses that can be claimed are being claimed.
Tax Return for Landlords
Whether if you own single buy to let property or you have a property portfolio, you are required to file your self-assessment tax return for your rental income. A property expert accountant can help you with the tax planning to minimise your tax bill and maximise your wealth. A tax accountant can help you to transfer your property to a limited company or assess various tax saving option options.
Specially Purpose Vehicle Company
SPV limited company is one of the most popular options for landlords due to the higher interest rate and restriction on claiming the interest expenses if you are a sole trader. SPV companies are the same as any other limited company. However, in the mortgage world, a Special Purpose Vehicle limited company is a company that is set up just to hold property and do nothing else. For example, Infariya Property Ltd is formed to purchase a flat in London. You cannot use this company to trade with other businesses as it will be restricted by mortgage lenders. You can hold multiple properties under one SPV to rent out each month.
The key benefits of SVP company are that it boosts your retirement income, and expands your property portfolio as there is no income tax due on the retained profit giving you more capital to re-invest.
Setting Up Holding Company
A holding company is a company created to buy and own shares of other companies which then controls it. It owns controlling interests in other companies.
The benefits of holding companies are that it is easy to raise capital, helps you expand into new markets and can defer taxes on profits. It also minimises the risk/asset protection as the holding company structure allows better asset management, better distribution of assets and efficient sale of the asset. It also helps with loans, borrowings and business growth.
Section 24 & Mortgage Interest Relief for Landlords
Since April 2020, Section 24 of the Finance Act 2015 has fundamentally changed how individual landlords can claim relief on mortgage interest. Before 2017, you could deduct 100% of your mortgage interest from rental income before calculating tax. Now, if you own properties in your personal name, you cannot deduct mortgage interest as an expense. Instead, you receive a flat 20% tax credit on your finance costs, regardless of whether you are a basic‑, higher‑ or additional‑rate taxpayer.
This shift hits higher‑rate and additional‑rate landlords the hardest. For someone paying 40% or 45% income tax, Section 24 can mean paying tax on “profits” you never actually receive, as mortgage interest is effectively excluded from your rental‑profit calculation.
What Section 24 really means for your tax bill
To illustrate the impact:
- Before Section 24:
Rental income: £24,000
Mortgage interest: £18,000 (deductible)
Taxable profit: £6,000
Tax at 40%: £2,400
- After Section 24:
Rental income: £24,000
Mortgage interest: £18,000 (not deductible)
Taxable profit: £24,000
Tax at 40%: £9,600
Less 20% tax credit on £18,000 = −£3,600
Net tax payable: £6,000
In this example, the landlord’s tax bill almost doubles despite the underlying cash profitability staying the same.
How many landlords are affected?
Section 24 applies to all individual landlords with residential rental properties in the UK, and Government estimates suggested around one in five landlords would be affected by the change. For higher‑rate taxpayers with highly leveraged portfolios, the tax‑cost increase can make properties feel less viable‑‑even if rents are rising.
Why limited companies are used to manage Section 24
Unlike individuals, limited‑company landlords are not subject to Section 24. Companies can still deduct 100% of mortgage interest as a business expense before calculating Corporation Tax, which often makes an SPV‑style buy‑to‑let company more tax‑efficient for higher‑rate investors.
This is why an increasing number of landlords now consider transferring properties into a Special Purpose Vehicle (SPV) limited company. But incorporation is not automatic “tax savings”‑‑it involves:
- Stamp Duty Land Tax (SDLT) on transfer of properties
- Capital Gains Tax on any gain crystallised when moving assets into a company
- Restructuring costs, future mortgage covenants, and pension‑ and inheritance‑planning implications
Capital Gain Tax Planning for Landlords
If you are a landlord and you have sold a residential property; you are required to file your CGT return within 60 days to avoid any penalty. A property tax accountant can help you to save money by efficient capital gain tax planning and capital gain tax return accounting.
Capital gains tax (CGT) is payable when you sell an asset that has increased in value since you bought it. The rate varies based on several factors, such as your income and size of gain. The rate of CGT that you will pay will depend on your income. You can use capital gain tax calculator to estimate your capital gain tax bill.
There are number of ways of reducing CGT. You can reduce your capital gains tax by using losses to reduce your gain. Transfers between spouses and civil partners are exempt from CGT, which means assets can be transferred from one partner to the other to use each person’s annual CGT exemption. This effectively doubles the CGT exemption for married couples and civil partners to £24,600. Making a pension contribution from net relevant earnings could help you save on CGT because it effectively increases the upper limit of your income tax band.
At Tax Care Accountant We Can File Your Capital Gain Tax Return at a Fixed of £300 Only.
Share This Post
More To Explore
Outsourced Bookkeeping vs In-House: UK Cost Comparison
Compare outsourced bookkeeping vs in-house costs in the UK, including salary, employer NI, pension and software, plus when hiring becomes cheaper.
Self Assessment vs PAYE: What Is the Difference?
Self Assessment vs PAYE explained: how each system collects UK income tax, who uses which, the deadlines that apply, and what happens if you use both.
What Are Payments on Account and How Do They Work?
Payments on account are advance instalments towards your next Self Assessment bill. Learn who pays, how HMRC works out the amount, and how to reduce them.
What Is the SA104 Form?
Understand what the SA104 form is, who must complete it, and how SA104S differs from SA104F. A clear guide for UK partnership partners filing Self Assessment.