Accountant for UK landlords and property investors

What landlords usually get wrong about tax

Rental income is taxable in full. It is not just what is left over after your mortgage payment. Many landlords work out profit by looking at their bank balance each month. HMRC's figure is often higher. Mortgage capital repayments are not an allowable expense. Neither are some other costs landlords expect to claim.

Capital costs and revenue costs get mixed up too. Replacing a boiler on a like-for-like basis is usually a revenue cost. A loft conversion is a capital cost. Get the split wrong and you either understate your bill or claim relief you are not entitled to. Mortgage interest works differently again. Relief is given as a reduction to your tax bill. It is not a straightforward deduction from rental income. That changes how much profit HMRC actually sees.

Landlords with more than one property often think each is taxed separately. In most cases they are not. UK rental properties are usually pooled together as one rental business for tax purposes. A loss on one property can often be set against a profit on another in the same tax year. Keeping good records for each property makes this straightforward.

Letting a property to a family member, or below market rent, also changes how HMRC views the arrangement. Some expenses may not be fully allowable in that case. It is worth flagging this kind of arrangement to us early, rather than after a return has already gone in.

The deadlines that apply to you

If you are letting a property for the first time, you generally need to register for Self Assessment. The deadline is 5 October, following the end of the tax year the letting began in. Miss it and you risk a penalty. That is true even if you had no tax to pay once expenses were counted.

Once registered, your Self Assessment return and any tax owed are due by 31 January. This applies whether you file it yourself or we file it for you. If your tax bill is large enough, HMRC may also ask for payments on account twice a year. We build these into your planning, so they do not land as a surprise.

Making Tax Digital for Income Tax is being phased in for landlords with higher rental income. It replaces the single annual return with quarterly digital record-keeping. We track where your income sits against that rollout. You will know when it applies to you, rather than finding out at the last minute.

What we handle for you

We prepare and file your Self Assessment tax return. We work from your rental income and expenses. Allowable costs are claimed correctly. Capital items are treated the way HMRC expects. If you have other income too, such as employment or dividends, we bring everything together into one return.

Thinking about a property purchase or remortgage? Our mortgage calculator is a useful starting point. It helps you model repayments against rental income before you commit. We also handle broader tax planning for landlords. That includes how a portfolio might be structured as it grows.

If you sell a rental property, we help you understand what is reportable and when. UK residential property disposals have their own separate reporting window. We make sure nothing is missed between completion and your next Self Assessment return.

What it costs

Fees depend on how many properties you let, how many transactions run through them each year, and whether you want ongoing bookkeeping support. Rather than guess at a figure here, check the pricing page for current fixed-fee packages.

We are a solo, ACCA-regulated practice working entirely online. Pricing is straightforward and fixed wherever we can make it so. You will know what a tax year costs before it starts. You will not be billed by the hour after the fact.

A single rental property usually costs less to file for than a growing portfolio with several. If your circumstances change during the year, such as buying or selling a property, we adjust your package rather than leave you on the wrong fee level.

Getting started

We start with a short call about your portfolio. How many properties do you have? How are they financed? Do you already track income and expenses somewhere? From there we can tell you quickly whether a simple annual filing suits you, or whether ongoing bookkeeping support makes more sense as your portfolio grows.

Once you are onboarded, records are shared digitally. Nothing needs posting or dropping off. Deadlines are tracked proactively, so you are prompted well ahead of the date rather than chased afterwards. If you already have an accountant, our switching accountants checklist covers what to check before you move.