If you own rental property in the UK, you are responsible for reporting your income and paying the correct tax. The rules are not simple, and they change regularly. Many landlords turn to a specialist for help. But what exactly do accounting services for property owners include? This article breaks down the core services, the tax context you need to understand, and what to expect from a property accountant.
Why Property Accounting Is Different from General Accounting
Property income has its own tax rules. You cannot simply treat it like a standard self-employed business. For example, mortgage interest relief is restricted to the basic rate of Income Tax for residential landlords [1]. This is known as Section 24. A general accountant might not be up to date with this rule, which can cost you money.
A property specialist understands the nuances. They know how to handle furnished holiday lettings (abolished from April 2025), HMO expenses, and the distinction between capital and revenue expenditure. They also keep track of the upcoming changes to Making Tax Digital (MTD) for Income Tax.
Core Services Included in Accounting for Property Owners
Most accounting services for property owners cover the following areas. The exact scope depends on your portfolio size and whether you hold properties personally or through a limited company.
1. Rental Income and Expense Tracking
Your accountant will help you set up a system to record all rental income and allowable expenses. You can deduct expenses from your rental income when you work out your taxable rental profit, as long as they are wholly and exclusively for the purposes of renting out the property [1]. Common allowable expenses include:
- Letting agent fees and management charges
- Repairs and maintenance (not improvements)
- Insurance premiums
- Ground rent and service charges
- Professional fees (accountant, solicitor)
- Utilities and council tax (if you pay them)
Your accountant will also advise on the cash basis versus standard accounting. If you meet the criteria but do not want to use the cash basis, you must check the box on your return to opt-out [1].
2. Self Assessment Tax Return Preparation and Filing
For most individual landlords, the annual Self Assessment tax return is the main compliance task. Your accountant will prepare the property pages (SA105) and ensure all income and deductions are correctly reported. They will also calculate your tax liability, including any High Income Child Benefit Charge or Student Loan repayments.
HMRC can charge you a penalty if your records are not accurate, complete and readable, or if you do not keep them for the required period [1]. You must keep your records for at least 5 years after the 31 January tax return deadline for each tax year [1]. An accountant helps you avoid these penalties.
3. Section 24 and Mortgage Interest Restriction
Since April 2020, landlords cannot deduct mortgage interest from rental income to reduce their tax bill. Instead, they receive a basic rate tax credit (20%) on the finance costs [1]. This change has pushed many higher-rate taxpayers into paying more tax. A property accountant will calculate the credit correctly and advise on strategies to mitigate the impact, such as incorporating into a limited company. You can read more about this in our complete guide to Section 24 and tax relief.
4. Capital Gains Tax Planning and Reporting
When you sell a rental property, you may owe Capital Gains Tax (CGT). The current rates on property are 18% for basic rate taxpayers and 24% for higher rate taxpayers. The annual exempt amount is £3,000. Your accountant will help you calculate the gain, apply reliefs such as Principal Private Residence Relief, and ensure you report the disposal to HMRC within 60 days if you are a non-resident. Our complete guide to CGT on property covers this in detail.
5. Making Tax Digital (MTD) Compliance
MTD for Income Tax is coming. From April 2026, landlords with gross property income over £50,000 must use MTD-compatible software to keep digital records and submit quarterly updates to HMRC [2]. The threshold drops to £30,000 from April 2027 [2]. Your accountant should be preparing you for this now. They will help you choose the right software and set up your digital record-keeping. Read our MTD guide for landlords for the full timeline.
Jointly owned property has its own MTD rules. The government has confirmed that jointly owned property will be treated as a separate business for MTD purposes, but with a simplified reporting process [2]. A specialist accountant will ensure you comply without unnecessary complexity.
6. Limited Company Accounting and Corporation Tax
Many landlords have incorporated to avoid Section 24. If you own property through a limited company, your accounting needs are different. The company must pay Corporation Tax on its profits, 19% for profits up to £250,000, and 25% above that. Directors have responsibilities including keeping company and accounting records, filing accounts and tax returns for the company [3]. The company also needs to register for VAT if it meets the requirements [3].
Our complete guide to buy-to-let limited companies explains the process and ongoing obligations.
7. VAT Advice and Registration
VAT is relevant for commercial property and some larger residential portfolios. If you own commercial property, you may have the option to tax (waive exemption) to recover VAT on costs. Your accountant will advise on whether this is beneficial. For residential landlords, VAT is generally not recoverable on costs, but there are exceptions for new builds and conversions.
8. Tax Planning and Strategy
Beyond compliance, a good property accountant provides strategic advice. This includes:
- Deciding whether to hold property personally or through a company
- Planning for inheritance tax (IHT) on your portfolio
- Structuring purchases and sales to minimise CGT
- Reviewing your portfolio for efficiency
- Advising on the tax implications of the Renters' Rights Act (Section 21 abolished from May 2026)
You can explore our full range of services to see how we support landlords at every stage.
What Accounting Services Do Not Typically Include
It is also important to understand what is not covered. Most accounting services do not include:
- Legal advice (e.g., evictions, lease disputes)
- Mortgage broking or financial advice
- Property management (finding tenants, repairs)
- Bookkeeping (though many accountants offer this as an add-on)
If you need these services, your accountant can usually recommend a trusted professional.
How Much Do Property Accounting Services Cost?
The cost varies based on the complexity of your portfolio and the services you need. A simple single-property landlord might pay a few hundred pounds per year for a Self Assessment return. A portfolio owner with a limited company and multiple properties could pay several thousand. We have a detailed breakdown in our article on how much a property accountant costs.
How to Choose a Property Accountant
Not all accountants are equal. You need someone who specialises in property and understands the specific rules. Look for:
- Experience with rental property tax
- Knowledge of Section 24 and MTD
- Ability to advise on incorporation
- Clear communication and fixed fees
- Positive reviews from other landlords
Our guide on how to choose a property accountant walks you through the selection process.
What to Expect When You Engage a Property Accountant
When you first engage an accountant, they will typically:
- Review your current portfolio and tax situation
- Explain the services they will provide and the fees
- Ask for your records (rental statements, invoices, mortgage statements)
- Set up a system for ongoing record-keeping
- Prepare and file your tax return or company accounts
- Provide ongoing advice throughout the year
Most accountants will also remind you of key deadlines, such as the 31 January Self Assessment deadline and the 31 July payment on account.
The Bottom Line
Accounting services for property owners are not just about filing a tax return. They cover compliance, planning, and strategy. With the introduction of MTD, the abolition of the FHL regime, and ongoing changes to landlord legislation, having a specialist on your side is more important than ever. If you are unsure where to start, contact us for a no-obligation discussion about your portfolio.
You can also use our tax calculators to get an initial estimate of your tax position.