Being a landlord can be both rewarding and challenging. Whether you’re new to property management or looking for a refresher, here are five crucial things every landlord should know to stay on top of their game.
By Adil Mehmood Mir, FCCA
1. Keep on Top of Your Records
Maintaining accurate records of your income and expenses is vital. This will help you monitor your property’s financial performance and ensure everything runs smoothly. With modern cloud software, you can update your records from anywhere—whether you’re at home or on the go. This also makes it easier for your accountant to prepare your tax return and claim all eligible expenses.
2. Stay Up to Date with Tax Rules
From April 2026, landlords earning over £50,000 from property will need to comply with Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA), which requires digital record-keeping and quarterly reporting to HM Revenue & Customs (HMRC). For those with property income exceeding £30,000, MTD requirements will kick in from April 2027.
It’s crucial to stay informed about deductible expenses. Costs directly related to property management, such as gas safety certificates and energy performance checks, are generally deductible. However, costs associated with acquiring the property, like surveyor fees, are not. Consult with your accountant to ensure you’re aware of all deductible expenses.
3. Think About Your Business Structure
While many landlords own properties personally, some choose to hold them through a company. This could offer tax benefits, but it’s not a one-size-fits-all solution. Discuss your options with your accountant to determine the best structure for your business goals. A well-thought-out structure can provide long-term advantages and align with your overall strategy.
4. Maximise Family Allowances
If you own property with a spouse or civil partner, there might be tax efficiencies available. By strategically using personal allowances and tax bands, you could reduce your tax liability. Ensure that any transfers of property between partners are handled correctly and explore tax planning opportunities with your accountant to make the most of available allowances.
5. Report Property Disposals Correctly
When disposing of UK residential property, you must pay and report Capital Gains Tax (CGT) within 60 days of completion. Non-UK residents must also report property disposals to HMRC within 60 days, regardless of whether tax is due.
Keep detailed records for CGT purposes, including:
- A log of capital expenditure
- Evidence of purchase price and surveyor fees
- Proof of estate agent and legal fees
- Key dates, such as when the property was lived in, rented out, and any periods it was empty
How Can We Help?
At AMACCOUNTEX LTD, we assist landlords with managing their property finances, ensuring compliance with tax regulations, and making the most of available allowances. For personalized advice and support, call us today at +44 (0) 744 360 9141 or complete our online enquiry form.
This blog is intended for informational purposes only and does not constitute professional advice. For specific guidance tailored to your situation, please contact us directly.