Owning rental property in England is one of the most reliable ways to build long-term wealth—but the tax obligations that come with it are anything but simple. Whether you own a single buy-to-let flat in London or a growing portfolio spread across multiple cities, the rules around rental income, allowable expenses, and property tax reporting have become increasingly complex in recent years. That’s where specialist landlord accountants come in. At H2 Accounting, we work with landlords across the whole of England, helping them navigate HMRC requirements with confidence. Led by a qualified Chartered Accountant with over 10 years of experience—including a significant tenure at KPMG—our London-based team is built on one principle: making your finances simpler, not more stressful.
In this guide, you’ll learn what landlord accountants do, why rental property tax is more complicated than most people expect, and how the right accountant can save you both time and money.
What Do Landlord Accountants Actually Do?
Landlord accountants are accounting professionals who specialise in the financial and tax needs of property investors and landlords. Unlike general accountants, they have detailed knowledge of property-specific tax rules—an area that has seen significant legislative change over the past decade.
Their core services typically include:
- Self-assessment tax returns — ensuring rental income is reported accurately and on time
- Allowable expense claims — identifying every legitimate deduction to reduce your tax bill
- Capital Gains Tax (CGT) advice — planning for when you sell a property
- Mortgage interest relief guidance — navigating the post-Section 24 landscape
- Making Tax Digital (MTD) compliance — preparing landlords for mandatory digital reporting
- Incorporation advice — assessing whether a limited company structure makes financial sense
For landlords with multiple properties or a growing portfolio, these services become essential rather than optional.
Why Is Rental Property Tax So Complex?
Rental income is taxable. Most landlords understand that much. But the rules governing how it’s taxed, what can be deducted, and when things need to be reported have shifted considerably since 2017.
The Section 24 Mortgage Interest Relief Change
Prior to April 2017, landlords could deduct their full mortgage interest from rental income before calculating tax. That relief has been phased out and replaced with a flat 20% tax credit—a change that pushed many higher-rate taxpayers into significantly larger tax bills, almost overnight.
Making Tax Digital for Income Tax
From April 2026, self-employed individuals and landlords with qualifying income above £50,000 will be required to use MTD-compatible software to submit quarterly updates to HMRC. This threshold drops to £30,000 in April 2027. If you’re not already preparing, now is the time to start.
Capital Gains Tax on Property Sales
Selling a rental property triggers a CGT liability in most cases. The annual exempt amount was reduced from £12,300 to £3,000 in April 2024, meaning more landlords are now facing CGT bills they may not have anticipated. Careful planning—ideally before a sale takes place—can make a material difference to what you owe.
These are just three examples. The full picture includes stamp duty surcharges, furnished holiday let rule changes, non-resident landlord requirements, and more.
How H2 Accounting Helps Landlords Across England
H2 Accounting is based in London and provides accounting and tax services to landlords throughout the whole of England. Our approach is straightforward: we take the complexity off your plate so you can focus on what you do best—managing and growing your property investment.
Here’s what working with our team looks like in practice:
Accurate Tax Returns, Filed on Time
Late or incorrect self-assessment returns can result in penalties from HMRC. We prepare and file your returns accurately, claiming every allowable expense and ensuring nothing is missed. Landlords are often surprised by what they can legitimately deduct—from letting agent fees and maintenance costs to landlord insurance and professional subscriptions.
Proactive Tax Planning
Good accountancy is not just about compliance—it’s about strategy. H2 Accounting reviews your situation throughout the year, not just at tax time. We identify planning opportunities, advise on the timing of expenditure, and help you structure your property interests in the most tax-efficient way possible.
MTD Readiness
We help landlords transition to Making Tax Digital before it becomes mandatory. That means setting up the right software, establishing quarterly reporting habits, and ensuring your records meet HMRC’s requirements. Getting ahead of this change now prevents disruption later.
Limited Company Structuring
For some landlords, holding property through a limited company can reduce the overall tax burden. It’s not the right solution for everyone, and the decision depends on individual circumstances. H2 Accounting provides honest, personalised advice—not a one-size-fits-all recommendation.
What Expenses Can Landlords Claim?
One of the most valuable things a specialist landlord accountant does is ensure you claim every expense you’re entitled to. Many landlords underclaim simply because they’re not aware of what qualifies.
Allowable expenses for rental property in England typically include:
- Letting agent and property management fees
- Repairs and maintenance (not improvements)
- Landlord insurance premiums
- Ground rent and service charges (for leasehold properties)
- Accountancy and professional fees
- Council tax and utility bills (where paid by the landlord)
- Advertising costs for finding tenants
Capital items—such as extensions or significant renovations that add value—are treated differently and may be eligible for relief upon sale rather than as annual deductions. Getting this distinction right matters, and it’s one area where specialist advice pays for itself.
Is It Worth Hiring a Landlord Accountants?
The short answer is yes, for most landlords. Here’s a practical way to think about it:
- If you own one property and your tax affairs are straightforward, a good accountant will ensure compliance, minimise your liability, and free up the time you’d otherwise spend navigating HMRC guidance.
- If you own multiple properties, the complexity compounds quickly. Without specialist help, overpaying tax and missing deadlines becomes a genuine risk.
- If you’re planning to buy, sell, or restructure, professional advice at the right moment can save thousands of pounds in tax.
H2 Accounting offers a free initial consultation so landlords can understand exactly what support they need—and what it would cost—before making any commitment.
Frequently Asked Questions – Landlord Accountants
What does a landlord accountant do?
A landlord accountant manages the tax and financial reporting obligations that come with owning rental property. This includes preparing self-assessment tax returns, identifying allowable expenses, advising on Capital Gains Tax, and helping landlords comply with Making Tax Digital requirements.
How much tax do landlords pay on rental income in England?
Rental income is added to your other taxable income and taxed at your marginal rate—20% for basic rate taxpayers, 40% for higher rate, and 45% for additional rate. Allowable expenses are deducted first, and a 20% tax credit is available for mortgage interest costs under the current Section 24 rules.
Can landlords claim mortgage interest as an expense?
Since April 2020, landlords can no longer deduct mortgage interest directly from rental income. Instead, a 20% tax credit is applied. Higher and additional rate taxpayers are most affected by this change. A specialist landlord accountant can help you plan around this.
When do landlords need to comply with Making Tax Digital?
Landlords with qualifying income above £50,000 must comply with Making Tax Digital for Income Tax from April 2026. The threshold drops to £30,000 from April 2027. H2 Accounting helps landlords prepare for this transition well in advance.
Should I hold my rental properties in a limited company?
This depends on your individual circumstances, including your income tax rate, the number of properties you own, and your long-term goals. There are potential tax advantages, but also additional costs and responsibilities. H2 Accounting provides personalised advice to help you make the right decision.
How do I find a good landlord accountant in England?
Look for a qualified accountant—such as an ICAEW Chartered Accountant—with specific experience in property tax. H2 Accounting is based in London and serves landlords across the whole of England.
Take Control of Your Rental Property Tax
Rental property can be a sound investment, but only when the financial side is managed properly. Tax rules change, deadlines matter, and the margin between a well-structured portfolio and a costly one often comes down to the quality of advice you receive.
H2 Accounting works with landlords across England to provide clear, reliable, and proactive accounting support. Based in London, our team combines technical expertise with a genuinely client-focused approach—because we know that behind every property portfolio is a person with real goals and real pressures.
Ready to simplify your rental property tax? Book a free 30-minute consultation with H2 Accounting today. Call us on 07356 246621 to get started.
