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Do Landlords Really Need An Accountant?

By June 10, 2019September 21st, 20212 Comments

Unfortunately, landlord tax accounting is becoming an increasingly complex area. Many landlords, both new and experienced, are turning to landlord accountants for assistance, but do they really need professional help?

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In a word, yes!

Buy-to-let investments are subject to their own specific taxation rules. For many landlords, rental income isn’t even their primary occupation, so trying to be compliant and tax efficient can be a huge strain on time and resources. How do you keep up with accounting best practices and updates to landlord tax on top of everything else?

An accountant can advise you on everything from the tax reliefs available to landlords, working out the tax credit on your loan interest to the accounting records you need to keep. So whether you’re starting out or managing multiple properties already, specialist landlord accountants like Warr & Co will make sure that you’re fully compliant and that you’re paying the least amount of tax possible.

If you’re thinking about becoming a landlord for the first time…

Did you know that even if you don’t turn a profit as a landlord, you must still declare your income as a landlord?

There are many aspects to landlord accounting that you need to be fully aware of before you start, so we recommend that you speak to an accountant first and start out on the right foot.

If you haven’t yet purchased the property, you can get help to ensure you’re being as tax efficient as possible. A landlord accountant will be able to help you understand what you can actually afford, and the best ways in which to choose and manage your finances according to your individual circumstances.

They will also be able to show you how to keep proper accounting records for HMRC, and make sure you’re completing your self-assessment tax returns correctly.

If you’re already managing one or more buy-to-let properties…

HMRC’s campaign to recover millions of pounds of unpaid landlord tax is called the ‘Let Property Campaign’ and relies on individuals voluntarily coming forward and setting things to rights. The problem? Most landlords don’t even know they’re not compliant.

Work with a landlord accountant to ensure that you are as tax efficient as possible whilst also being fully compliant. They can help with everything from tax returns and bookkeeping to regulatory and tax changes. With an accountant looking after the finance and tax work, you’re back to doing what you do best.

If you own a property within a block of flats…

You may want to think about setting up a flat management company, which is a convenient way for residents in a block of flats to manage shared expenses such as insurance, roof repairs and communal cleaning.

In a typical company, each owner of a flat will have one share in the flat management company. The residents will elect directors to deal with the formalities of the company, setting an annual service charge that every flat owner will be required to pay.

These companies are governed by the Companies Act just like any other company and so must prepare and file annual accounts. We currently act for around 100 such companies.

Your accountant will be able to help with setup, and can offer the following ongoing services:

  • Submission of annual accounts to Companies House
  • Submission of company tax returns to HMRC
  • Annual tax returns
  • Managing service charge accounts with stakeholders and tenants
  • Proactive tax and legislation advice


Get in touch

Whether you’re a professional landlord or you only rent out a property as a side business, you can benefit from working with a specialist accountant.

Our team of landlord accountants and flat management accountants specialise in this area of tax and can provide a comprehensive service, ensuring you stay compliant and tax efficient. We offer a straightforward, honest service with no unexpected fees – just the type of quality service you’d expect from a small but highly experienced team.

Get in touch for a free, no-obligation consultation.

Join the discussion 2 Comments

  • E CIPRIANI says:

    Hi I own the leasehold on a flat and have a full time job. I am considering to let the flat out and rent somewhere with my girlfriend. The rental income would cover my mortgage. I would like to know the tax implications.

    • Warr Co says:

      Hi Emiliano, thanks for commenting. The tax implications of renting out your flat will depend on a number of factors, so it’s best if we can book you in for a free consultation to understand your particular circumstances. We’ll drop you an email and look forward to helping you make a decision about becoming a landlord.

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