Accountant for Landlords UK — Rental Income Tax & Property Accounting
Whether you own a single buy-to-let property or a growing portfolio of rental properties, the tax rules for landlords in the UK are increasingly complex — and increasingly costly if you get them wrong. At ProKeeper, we provide specialist accounting and tax services for UK landlords, helping you stay compliant, maximise your allowable deductions, and structure your property investments as tax-efficiently as possible.
Who We Help
- Buy-to-let landlords with one or multiple properties
- HMO (House in Multiple Occupation) landlords
- Furnished holiday let (FHL) operators
- Property investors considering or already using a limited company structure
- Landlords with overseas property income
- Accidental landlords (e.g. inherited a property or moved and kept a former home)
Rental Income Tax — What Landlords Need to Know
Rental income is taxable. As a UK landlord, you must declare rental income on a self assessment tax return. The key changes in recent years include the phased removal of mortgage interest relief (now replaced by a 20% tax credit), stricter rules on what expenses can be deducted, and the introduction of Making Tax Digital for Income Tax Self Assessment (MTD ITSA), which will require digital reporting for landlords with rental income above £50,000 from April 2026, and £30,000 from April 2027.
Our Landlord Accounting Services
- Rental income tax returns — accurate self assessment filing including all rental income, allowable expenses, and mortgage interest credit
- Allowable expense identification — we ensure you claim all legitimate deductions including letting agent fees, maintenance and repairs, buildings insurance, accountancy fees, and ground rent/service charges
- Capital Gains Tax (CGT) on property — CGT reporting and calculation when you sell a property, including Principal Private Residence relief and other exemptions
- Stamp Duty Land Tax (SDLT) guidance — advice on SDLT implications when purchasing additional properties (the 3% surcharge for additional dwellings)
- Limited company property advice — for growing portfolios, we advise on the tax implications of holding properties personally versus through a limited company (SPV)
- Furnished Holiday Let tax treatment — FHLs have historically had advantageous tax treatment; we keep you updated on rule changes and help you maximise legitimate reliefs
- MTD ITSA preparation — we get you ready for Making Tax Digital for Income Tax, ensuring you’re using compliant software well ahead of the deadlines
Should You Hold Property Through a Limited Company?
This is one of the most common questions we get from UK landlords. The answer depends on your specific situation — your existing portfolio, income tax rate, plans for the portfolio, and whether you’re looking to pass properties to the next generation. For many higher-rate taxpayers with growing portfolios, a limited company (Special Purpose Vehicle or SPV) can offer significant tax advantages: full mortgage interest deductibility, lower corporation tax rate, and more flexible profit extraction. However, restructuring an existing portfolio into a company has significant cost and tax implications that need careful analysis.
ProKeeper will analyse your specific situation and give you clear, honest advice on which structure is right for you.
Capital Gains Tax for Landlords
When you sell a rental property, you may face a Capital Gains Tax (CGT) bill. From April 2024, CGT rates on residential property are 18% (basic rate) and 24% (higher rate). You have an annual CGT exemption (£3,000 for 2024/25). If you sell a property, you must also report and pay any CGT within 60 days of completion using HMRC’s capital gains reporting service — before your next self assessment return. We handle this for you promptly.
Landlord Accounting Pricing
Self assessment filing for landlords with rental income starts from £200 per year for a straightforward single property. More complex situations (multiple properties, CGT, overseas income) are priced accordingly. Contact us for a fixed-fee quote.
Frequently Asked Questions — Landlord Accounting UK
What expenses can I deduct against rental income?
Allowable expenses include letting agent and management fees, insurance, repairs and maintenance (not improvements), council tax and utility bills you pay, accountancy and legal fees, and ground rent. Since April 2020, mortgage interest is no longer directly deductible — instead, you receive a 20% tax credit on mortgage interest paid. Capital improvements (e.g. building an extension) are not deductible against income but may reduce your CGT bill when you sell.
Do I need to declare rental income if my profit is small?
Yes. If your total rental income (before expenses) exceeds £2,500 per year, you must declare it via self assessment. There is a property income allowance of £1,000, but above this threshold you must report your income. HMRC cross-references rental income data from Land Registry records, letting agencies, and tenancy deposit schemes, so undeclared rental income is increasingly likely to be identified.
What is Making Tax Digital for landlords?
MTD ITSA will require landlords with rental income above the relevant threshold to keep digital records and submit quarterly updates to HMRC. The deadlines are April 2026 for those earning over £50,000 and April 2027 for those earning over £30,000 from self-employment and/or property. ProKeeper will prepare you for these changes well in advance, setting you up with compliant software and a smooth reporting process.
Expert Accounting for Landlords — Across the UK
Property investment is rewarding, but the tax landscape for landlords has become increasingly complex. Let ProKeeper navigate it for you, ensuring you pay no more tax than you legally need to, stay compliant with HMRC, and are ready for future changes.