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Landlord Accountants London

Specialist Accountants for Landlords Serving London and Nationally
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What do landlords need to take into account?

Perhaps you own one or more properties that you rent out, whether that’s houses or flats. You might have a buy-to-let mortgage or own the property outright. Whatever your circumstances, keeping on top of your finances is essential. There are specific tax requirements placed on you as a landlord, from property tax to income tax. Seeking expert advice for managing property finances in the UK can make a huge difference.

You may be wondering, do landlords registered in England need a specialist accountant? And what are my financial and tax requirements as a landlord?

The team at WIS Accountancy are tax specialists with extensive experience as accountants for landlords. In the information below, we’ve aimed to cover all the basics you need to know.

Do landlords need accountants?

As a landlord, do you need to hire a specialist accountant for tax advice and submission? While there’s no legal requirement for you to seek help with property tax, Self Assessment tax or any other aspect of landlord finances, that doesn’t mean it isn’t a good idea. To achieve being tax-efficient might mean bringing in outside help.

Whether you’re investing in a buy-to-let property for the first time or you’re a limited company or business landlord responsible for dozens of properties across the country, the support of an expert account service can make a considerable amount of difference.

Accounting for a buy-to-let property

If you’re brand new to the world of rental properties as a business or an individual, working with a trained and qualified accountant for landlords is a good idea. It’s the best way to ensure you’re meeting your property tax obligations.

A trained landlord accountancy company can help handle all aspects of your property finances. This includes anything from creating landlord tax returns, providing insight into VAT, and managing communications with the tax office.

Financial guidance for multiple tenancies

It can be a challenge for limited companies and larger businesses operating under a trading name to handle dozens of moving parts and finances at once. The insight of qualified and trained property accountants can ensure your taxes are accurate and completed on time.

While you likely understand the ins and outs of taxes, outsourcing the facts and figures can help ensure your business or company continues to run on time with no potential property tax snags or forgotten finances.

Landlord accountants for multi-occupancy buildings

If you own a multi-occupancy property, more taxes and costs may apply than would be the case for single-occupancy buildings, such as houses or individual flats. An experienced landlord accountancy service can ensure all additional fees are accounted for to provide accurate expenses on your yearly landlord tax return.

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What tax do you pay as a landlord?

As a landlord, there are several different financial factors you’ll need to consider regarding the ownership of multiple properties. Here is a quick overview of the landlord taxes you’ll need to cover:

Landlord tax on rent and property income

As a self-employed person – in this case, a landlord – you’ll be required to pay income tax to HMRC on any earnings you make from residential lets.

These include any profit that you receive directly from your tenants, whether that’s the rent, payment for communal services or compensation for utility bills.

When you take a deposit from a tenant, it must be placed in a government-approved tenancy deposit scheme for the duration of the tenancy. If, at the end of the tenancy, the entire deposit is returned to the tenant, there is no income from that deposit to report. However, any cash you retain for cleaning and repairs is classed as income.

As part of your income tax return, you’ll need to cover any relevant National Insurance contributions, too.

Contact or call our team of accountants for free property tax advice for limited company or business accounts.

Allowable expenses to reduce rental income tax

As with any other Self Assessment tax return, as a property owner you will be able to claim certain expenses against your rental properties. These expenses reduce your overall profit, which affects the amount of landlord tax you’ll need to pay. Your limited company can claim a variety of expenses, including council tax, accountant’s fees, maintenance costs, insurance premiums, and property repairs.

Capital Gains Tax on property sales

If you sell a rental property, you’ll need to pay Capital Gains Tax. This tax is applied to any property that is not your primary residence, whether it’s a holiday home or a buy-to-let property.

Currently, depending on your taxpayer level, you’ll need to pay 18% or 28% of the profit of a property sale in Capital Gains Tax. Capital Gains Tax is an essential payment for all non-primary property sales.

What is property accounting?

Property accounting refers to a specific type of accounting for landlords and property management businesses. A property accountant has specific expertise in handling accounts and tax returns for landlords.

With the right accountancy services, you’re able to take advantage of their specialist knowledge to keep your finances on track and on time. You also benefit from the time you save by having someone else deal with that for you, time you can spend working on your business instead. Partnering with a qualified and registered property accounting business service is a wise decision and a sound investment. Whether you are considering a buy-to-let property or you’re already an established landlord, financial advice and services can help make the money and landlord tax process more efficient.

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How does the taxman know about my rental income?

Some landlords may feel that they can avoid or reduce the costs involved in renting out properties if they are smart about it. However, HMRC has multiple ways to find out exactly what your income on rented property is, which may lead to problems in the long run for you or your business.

The ways that the tax office can figure out you aren’t paying the full amount of tax due include:

Examining Stamp Duty Land Tax (SDLT) records

Some landlords may feel that they can avoid or reduce the costs involved in renting out properties if they are smart about it. However, HMRC has multiple ways to find out exactly what your income on rented property is, which may lead to problems in the long run for you or your business.

The ways that the tax office can figure out you aren’t paying the full amount of tax due include:

Examining Stamp Duty Land Tax (SDLT) records

f you own multiple properties outright or with buy-to-let finance, the SDTL office will automatically inform HMRC that these additional houses or flats may not be for personal use.

Checking HM Land Registry

All personal properties and land sold and/or registered in England and Wales since 1993 are recorded by HM Land Registry. It takes seconds for the taxman to find out whether property owners have applied for private residence relief.

Talking to estate agents and property management companies

If your properties are handled by an estate agent or property management company service, they are obligated to follow specific regulations or else be subject to a significant fine. This includes providing accurate information on rentals.

Looking at tenants’ security deposits

All tenants’ security deposits must be registered with a government-supported scheme in the UK, allowing HMRC to see records of tenancies quickly and easily and determine whether you’re paying landlord tax.

Through the electoral register

If your tenants register to vote at a residential property that is not declared as a rental investment, this could indicate to the tax office that your property is being rented out; they can then check whether they’ve received a tax payment on that rental income.

Need accountants for landlords? Contacts WIS Accountancy

If you’re renting out a house or any other kind of property in the UK, seeking professional help with your money, fees and taxes can ensure you are meeting your legal obligations. Our WIS Accountancy team has extensive experience in optimising reliefs, providing advice and managing residential rental income. We use the latest software to support all our clients with tax returns, tax advice, Capital Gains Tax, and more.

From buy-to-let properties to multi-occupancy houses and buildings, we’re the best accounting service to get in touch with in order to receive the right advice. If you’re a limited company in need of comprehensive landlord services, including payroll, WIS Accountancy provides that level of support, too.

Contact or call us on 0203 0111 898 and speak to our team of professional accountants today. We can guide you and provide expert property accounting advice. This includes dealing with property taxes as a landlord, advising your limited company to manage tax returns on accounts, monthly rental income, payroll, investment, personal rental property and other monthly tax services.