5 Things Landlords Need to Know
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Being a landlord can be both rewarding and challenging. Whether you’re just starting out in property management or have years of experience, there are some key responsibilities and tax rules you can’t afford to overlook. Staying informed will not only help you stay compliant with HMRC but also ensure your property business remains profitable.
1. Keep on Top of Your Records
Accurate record-keeping is essential for every landlord. Maintaining detailed logs of your income and expenses will:
· Help track your property’s financial performance
· Make it easier to identify areas for cost savings
· Ensure your accountant can claim all allowable expenses on your behalf
With modern cloud-based accounting software, you can update records anytime, anywhere. This keeps your finances organised and reduces stress at year-end.
2. Stay Up to Date with Tax Rules
Tax rules for landlords are changing, and it’s important to plan ahead:
- From April 2026, landlords earning over £50,000 will need to comply with Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA).
- From April 2027, this will extend to those with property income over £30,000.
This means you’ll need to keep digital records and submit quarterly reports to HMRC.
Also, be clear on what expenses are deductible. Allowable costs typically include:
- Gas safety certificates
- Energy performance checks
- Repairs and maintenance
Non-deductible costs include items like surveyor fees or costs of acquiring the property. For clarity and compliance, always check with your accountant.
3. Think About Your Business Structure
Many landlords hold properties personally, but some choose to use a limited company structure. This can offer tax benefits, but it depends on your circumstances.
A company may allow:
- Access to different tax rates
- Potential long-term savings
- Flexibility in how profits are reinvested
However, this isn’t always the best fit. The right structure depends on your income, growth plans, and long-term strategy. Speak with your accountant to find the most tax-efficient option.
4. Maximise Family Allowances
If you own property jointly with a spouse or civil partner, you may be able to reduce your overall tax bill. By carefully allocating ownership shares, you can make better use of:
- Personal allowances
- Lower tax bands
- Dividend or savings allowances (if held in a company)
Transfers between partners must be done correctly to remain compliant. With professional advice, you can structure ownership to minimise tax and maximise income.
5. Report Property Disposals Correctly
When you sell a UK residential property, you must report and pay Capital Gains Tax (CGT) within 60 days of completion. This also applies to non-UK residents, even if no tax is due.
Keep detailed records to support your CGT calculation, such as:
- Purchase price and surveyor fees
- Capital improvements or renovations
- Estate agent and legal costs
- Dates the property was lived in, rented out, or vacant
Proper documentation avoids errors and potential HMRC penalties.
How Can We Help?
At AMAccountex Ltd, we specialise in supporting landlords with:
- Digital record-keeping and compliance with MTD rules
- Claiming all allowable expenses
- Tax-efficient structuring of property ownership
- Correct and timely CGT reporting
- Strategic tax planning to protect your profits
📞 Call us today at +44 (0) 744 360 9141 or complete our online enquiry form to get expert advice tailored to your property business.
