Industry
Accountants for landlords
Rental accounts, the finance cost restriction, allowable expenses and disposal planning for property investors.
Overview
Your sector, in practice
Property investment has become a far more technical area of tax than it was ten years ago. The restriction on finance costs, the additional rate of Stamp Duty, 60-day capital gains reporting and the coming extension of Making Tax Digital have all changed the arithmetic.
We act for landlords across Scunthorpe and North Lincolnshire, from a single let property to portfolios held personally and through companies — a market where yields are comparatively strong and portfolios are often built gradually.
Challenges
What makes this sector different
Finance cost restriction
Mortgage interest is relieved as a basic-rate tax reducer rather than deducted from profit, which can push higher earners into a materially worse position.
Repairs versus improvements
Revenue repairs are deductible now; capital improvements are relieved only on disposal. The line is not always obvious.
60-day CGT reporting
A UK residential disposal at a gain must be reported and paid within 60 days of completion, entirely separately from the tax return.
Incorporation questions
Moving a portfolio into a company can help with interest relief but triggers SDLT and CGT considerations that often outweigh the benefit.
Tax and accounting
Key considerations
Ownership structure
Personal, joint, tenants in common with unequal shares, or corporate — each has different income tax and inheritance consequences.
Replacement of domestic items relief
The relief that replaced the wear and tear allowance applies only to like-for-like replacements.
Furnished holiday lets
The rules in this area have changed and any established assumptions should be re-checked against the current position.
Making Tax Digital for Income Tax
Landlords above the income thresholds will need digital records and quarterly updates. Preparation is better than a rush.
How we help
Our work for these businesses
- Property income accounts prepared per property or portfolio
- Self Assessment returns with correct finance cost treatment
- Capital gains computations and 60-day property reporting
- Incorporation modelling including SDLT and CGT costs
- Company accounts and tax for property holding companies
- Digital record keeping ready for MTD for Income Tax
Watch out
Common mistakes we see
- Deducting mortgage interest in full from rental profit
- Treating a refurbishment before first letting as a repair
- Missing the 60-day reporting deadline on a sale
- Failing to claim allowable finance and professional costs
- Incorporating without modelling the SDLT and CGT charges first
FAQs
Landlords questions
Not from rental profit. Finance costs for residential lettings are relieved as a basic-rate reduction against the tax due. Companies are treated differently, which is why the incorporation question keeps arising.
Enquire
Tell us about your business
A short conversation is usually enough for us to tell you whether we can improve on what you have now.
Related services
Services that work alongside this
- AccountingA complete accounting relationship: statutory compliance, regular reporting and someone to ring before you make a decision.
- BookkeepingAccurate, reconciled records kept up to date weekly or monthly, so VAT, payroll and year-end all take care of themselves.
- Self Assessment Tax ReturnsReturns prepared and filed for sole traders, directors, landlords and higher earners — early, accurate and with the reliefs claimed.
- Tax PlanningLegitimate, well-documented planning across profit extraction, capital investment, pensions, property and succession.
Related industries
Businesses we work with
- PropertyDevelopers, investors and property companies — structure, VAT on development, appraisals and funding.
- Limited CompaniesEverything a Scunthorpe limited company needs — accounts, tax, payroll, VAT and director planning in one place.
- Sole TradersSimple, affordable support for the self employed — accounts, tax returns and honest advice on going limited.
- Professional ServicesConsultancies, agencies and practices — utilisation, work in progress, partner drawings and extraction.