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Landlord Accounts & Tax

Being a landlord means you’re running a business – even if it doesn’t feel like one. Rental income goes in your Self Assessment. Allowable expenses need to be claimed correctly. If you’ve sold a property or you’re thinking about it, Capital Gains Tax needs to be handled with care. And the way HMRC treats landlords has changed significantly over the last decade – mortgage interest relief, the replacement domestic items rule, the changes to furnished holiday lets, Making Tax Digital for Income Tax – there’s a lot to keep on top of. We handle the accounts and tax for landlords, from one rental property to a growing portfolio.

In a nutshell: we keep your rental income and expenses in order through the year, prepare and file your Self Assessment, advise on the tax position as it changes, and deal with HMRC when they come knocking. Fixed fee, agreed upfront. Plain English at every step.

What Landlords Need to Declare

All rental income – whether from residential lettings, commercial property, furnished holiday lets, or a room in your own home – needs to be declared to HMRC. The details vary:

Residential lettings: rental income minus allowable expenses is taxable. Since 2020, mortgage interest relief has been replaced by a 20% tax credit on finance costs – a significant change that still catches landlords who moved into property investment before the rules changed. Higher-rate taxpayers in particular pay more than they did under the old system.
Furnished holiday lets (FHLs): until April 2025, FHLs had a separate, more favourable tax regime – mortgage interest fully deductible, access to capital allowances, qualifying for Business Asset Disposal Relief on sale. From 6 April 2025, the FHL regime was abolished; FHLs are now treated as standard residential lettings. If you have or had a holiday let, the change to your tax position is worth reviewing with us.
Commercial property: different rules apply to commercial lettings – VAT may be relevant, and the depreciation and capital allowances treatment is different from residential.
Rent-a-Room: income from letting a furnished room in your own home is exempt up to £7,500 per year. Above that, you choose between the standard method (income minus expenses) and paying tax on the gross above the threshold.

Allowable Expenses for Landlords

Getting expenses right matters – both for claiming everything you’re entitled to and for avoiding claims HMRC will challenge. Commonly claimable expenses include:

Letting agent fees and property management charges
Repairs and maintenance (note: improvements are not repairs – we’ll tell you the difference)
Buildings and contents insurance
Ground rent and service charges
Accountancy fees
Utility bills paid by the landlord
Travel to inspect or maintain the property.

The replacement domestic items relief allows you to claim the cost of replacing items such as beds, sofas, and appliances in residential lets (not the original purchase price – only replacements). We work through the details at year-end to make sure nothing’s missed and nothing’s overclaimed.

There is also a HMRC Property Allowance which is a tax-free exemption and available for some landlords. We will advise if you are eligible for the allowance and if it is tax efficient to use it.

Capital Gains Tax on Property Sales

Selling a residential property that isn’t your main home triggers a Capital Gains Tax liability on the gain. Two important things to know:

The 60-day reporting window. Since April 2020, HMRC has required a separate Capital Gains Tax report within 60 days of completion on a residential property disposal. This is separate from the annual Self Assessment. Missing the deadline triggers an automatic penalty. We handle this report as a standalone piece of work – see our CGT Reporting page for the details.

Annual Self Assessment. The disposal also goes in your Self Assessment for the tax year of sale, with the tax position and any annual exempt amount applied.

If you’re thinking about selling a property, talk to us before you exchange. The timing of a disposal, the availability of private residence relief on any period you lived there, and whether there’s a loss to carry forward from elsewhere all affect the bill. See our Tax Planning page for the planning conversation.

Making Tax Digital for Landlords

From April 2026, Making Tax Digital for Income Tax applies to landlords and self-employed people with qualifying income above £50,000, dropping to £30,000 from April 2027. Instead of a single annual Self Assessment, you’ll file quarterly digital updates and a final declaration.

If you’re approaching these thresholds – or already above them – the quarterly reporting cycle requires clean, current records through the year. We handle the setup and the ongoing compliance. See our Cloud Accounting & Making Tax Digital page for everything you need to know.

Do I need a limited company for my property portfolio?

The question we get most from landlords with growing portfolios. The answer is: it depends.

A limited company can pay corporation tax on profits (currently 19–25%) rather than income tax at up to 45%, which looks attractive. But the company can’t use the £7,500 rent-a-room exemption; basic-rate tax relief on mortgage interest is available in both structures, and extracting profits from the company creates another taxable event for the individual. There are also stamp duty and CGT implications on transferring existing properties into a company.

We run the numbers for your specific situation. The answer isn’t the same for everyone, and the calculation changes as the portfolio grows and as interest rate assumptions shift.

How We Work

Three steps, every year – plus we’re available for questions in between.

You complete our online checklist. It covers rental income and expenses, any properties bought or sold, and anything HMRC has sent you. Most landlord clients finish it in five to fifteen minutes.

We prepare your accounts and return. Matt or Julia will be in touch if anything needs a quick conversation: an expense categorisation, a capital gain calculation, a tax code query. Records come through ShareFile. We work with Xero, FreeAgent, and Dext for clients who keep digital records.

We file and tell you what to pay. You see the return before it goes to HMRC. Once you’ve approved, we submit, and you get a clear note of what’s due and when. If HMRC writes to you, forward it on. We’ll translate it or tell you to ignore it.

Fixed Fees, No Surprises

Landlord accounting fees depend on how many properties you have, whether any were bought or sold, how complex the expense picture is, and whether MTD quarterly reporting is in scope. The right number for your situation comes from a brief conversation, not a price list.

Ask for a fixed fee for your accounts

A couple of minutes on our online form, and we’ll come back to you with a number.

Who we look after

Accidental landlords – a property that didn’t sell, an inheritance, a move to a new house with a rental kept on
Buy-to-let landlords with one to several properties
Portfolio landlords with multiple properties requiring thorough record-keeping and regular planning conversations
Landlords who have sold property in the last tax year and need the 60-day CGT report and the Self Assessment handled correctly
Furnished holiday let owners adjusting to the post-April 2025 regime change.
Landlords approaching MTD thresholds who need to get set up for quarterly digital reporting

Why Clients Stay With Us

We’ve been looking after landlords and property owners since Stacey McVeighty FCCA founded the practice in 2014. Today, we work with around 800 clients from our York office. We’re ACCA-accredited, and we hold 39 five-star reviews on Google, most from clients who’ve been with us for years.

Fixed fees. Plain English. The same team next year, and the year after that.

Absolutely delight with the service from the whole team, they go above and beyond.

Lucie Wishart
3 months ago via Google

Frequently Asked Questions

Do I need to declare rental income if I only have one property?

Yes, if your rental income exceeds £1,000 in a tax year (below that, the property income allowance exempts it). One property is enough to require a self-assessment. If you’re not sure whether you should have been filing, drop us a message. HMRC has a requirement checker, and we’ll tell you straight away whether you’re in scope.

What happened to mortgage interest relief for landlords?

Mortgage interest can no longer be deducted directly from rental income. Instead, you get a 20% tax credit on finance costs. For basic-rate taxpayers, the outcome is roughly the same as under the old system; for higher-rate taxpayers, it’s significantly worse. We factor this into the tax calculation every year and flag when it’s worth reviewing the portfolio's structure.

I’ve sold a buy-to-let property. What do I need to do?

Firstly, you will need to work out if there was a gain on the disposal. We can do this for you. If there was a gain, then you have 60 days from completion to prepare and submit a CGT Property Disposal Return to HMRC. If you are a non-resident landlord, the return is submitted even if you did not make a capital gain. The disposal is also included in your Self Assessment for the year of sale. The 60-day report usually comes first – missing it triggers an automatic penalty even if you have no tax to pay. See our CGT Reporting page for the full details. If you haven’t yet exchanged, speak to us first – there may be planning available.

How does the change to the furnished holiday let rule affect me?

From 6 April 2025, FHLs are taxed the same as standard residential lettings. You lose the ability to deduct mortgage interest in full, lose access to capital allowances on furniture and equipment, and the property no longer qualifies for Business Asset Disposal Relief on sale. If you have an FHL, we’ll review the full impact on your tax position and discuss whether any planning is available.