If you’re running a commercial property rental business or managing multiple residential units, you need to know how to navigate complex tax rules so that you remain compliant while maximising your returns. Accountants for landlords can help you structure expenses and plan ahead to make confident decisions about your investments while making full use of available deductions and reliefs.
Allenby Accountants can support you right from the very beginning of your property investment journey. If you’re preparing to buy a rental property, our accountants for landlords can guide you through the financial regulations that apply to your case to help you avoid costly mistakes. Beyond that, we can assist you with managing your property’s cash flow and identifying deductible expenses such as mortgage interest and property repairs. Our accountants for landlords ultimately help you build the financial foundation needed to expand your property portfolio and stabilise rental income during periods of economic uncertainty or changing demand.
Advice on property acquisition
An accountant can run a detailed and objective financial analysis when you’re looking at a new property. They review projected rental income and expenses, as well as potential capital gains, to confirm if the investment fits your goals and/or point you toward properties with strong growth potential. They can also flag tax implications tied to the purchase and make sure that you benefit from any reliefs or deductions available.
Tax implications and planning
Tax rules can quickly become complex for landlords because property income is taxed differently from other earnings and often spans multiple regimes. Various factors can impact your overall profitability, from income tax on rental income to capital gains tax and available reliefs. Accountants for landlords can help you navigate these areas with confidence, ensuring that you make the most of current regulations.
Structuring your investment
Should you hold your properties personally or through a limited company? Your accountant can explain the benefits of using a limited company, including tax treatment on profits and opportunities for reinvestment. They can also explain to you the different compliance responsibilities and filing requirements so you can choose the setup that best matches your investment strategy.
Reduce your taxable income
Rental income is taxable, and it must be reported alongside your other earnings through a self-assessment return. Since April 2020, mortgage interest relief has been replaced with a 20% tax credit, which changes how landlords plan. Accountants for landlords ensure that you account for this change and help minimise its impact on your returns.
Maximise tax deductions and reliefs
Specialist accountants for landlords also help you take advantage of deductions and reliefs that lighten your tax burden. Examples include:
- Renewals for replacement – Deducting the cost of replacing items such as furniture and appliances.
- Tax relief on finance costs – Exploring limited options for offsetting finance expenses against taxable income.
Cash flow management
Healthy cash flow is key to long-term property success. Accountants track all income and expenses, from mortgage payments to letting agent fees and ongoing maintenance. They can help set rental prices that maintain occupancy and keep your finances balanced. Many also recommend cloud-based accounting software and budgeting tools, which make it easier to stay organised and avoid shortfalls.
Plan with confidence
At Allenby Accountants, we provide landlords with comprehensive support for long-term property investment planning. From acquisitions and tax strategies to cash flow management, our team helps you make informed decisions every step of the way. Call us on 0208 914 8887 to arrange a free consultation with our accountants for landlords, and see how we can help grow your property portfolio with confidence.
