Working with a UK Accountant as a Landlord

According to recent analysis of Companies House data, the number of buy-to-let limited companies in the UK has now passed 400,000, as more and more landlords incorporate to become more tax efficient.

This is the fastest growth of any industry, after a record breaking 61,517 new buy-to-let limited companies were set up in 2024. This is a 23% increase on what had previously been a record set in 2023.

Hamptons research found that since February 2016, the number of buy-to-let companies has risen by 332%, going from 92,975 to 401,744.

There are now more buy-to-let companies registered on Companies House than any other type of business.

Owning property to rent out as a limited company comes with various tax advantages, including corporation tax being lower than income tax.

Being a landlord in the UK can be a rewarding venture, offering steady income and long-term capital growth. Whether you’re managing a single buy-to-let property or a growing portfolio, a Gorilla Accountant can help you stay compliant, maximise profits, and take the stress out of property finances.

With this opportunity comes a host of financial responsibilities, tax implications, and ever-changing regulations. That’s where working with a qualified UK accountant can make a world of difference.

Why Do Landlords Need an Accountant?

Navigating Tax Obligations

Landlords in the UK must report rental income and pay tax on profits through a self-assessment. This process can become complicated if:

• You own multiple properties
• You’ve sold or plan to sell a rental property (due to Capital Gains Tax)
• You claim various allowable expenses
• You earn rental income jointly with a spouse or business partner
• You have multiple income streams alongside being a landlord

A knowledgeable accountant will help you correctly report rental income and ensure you’re not overpaying (or underpaying) tax. They’ll also make sure you meet key deadlines, avoiding costly penalties.

Maximising Allowable Expenses

There’s a range of expenses landlords can deduct from rental income to reduce taxable profit, such as:

• Letting agent fees
• Maintenance and repairs
• Insurance premiums
• Accountancy fees
• Utility bills (if paid by the landlord)
• Ground rent and service charges

Navigating these expenses can be difficult without the help of a knowledgeable accountant.

Making Tax Digital

With Making Tax Digital set to affect more landlords and sole traders in the coming years, it’s helpful to work with an accountant who uses cloud accounting software like Xero or FreeAgent. This makes record-keeping easier and helps you stay compliant.

At Gorilla Accounting, both are included in your monthly fixed-fee package, and it is compulsory to use digital accounting platforms to adhere to Making Tax Digital.

From April 2026, landlords will have to comply with the rules as Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is introduced. The rollout is staggered based on your turnover:

• From April 2026: MTD for ITSA becomes mandatory for landlords with a turnover exceeding £50,000 in their 2023/24 tax return
• Effective from April 2027: MTD for ITSA becomes mandatory for landlords with a turnover exceeding £30,000
• Effective from April 2028: MTD for ITSA becomes mandatory for landlords with a turnover exceeding £20,000

To comply with MTD for ITSA regulations, you must:

• Use HMRC-approved software for your bookkeeping
• File quarterly updates with HMRC digitally to summarise your income and expenses
• File an annual End of Period Statement (EOPS)
• File a Final Declaration

Making Tax Digital will essentially make sure your accounts are as accurate as possible, which is good for organisational purposes for your business, and ensuring you won’t ever be in trouble with HMRC.

How Gorilla Accounting Can Save You Money

One of the biggest misconceptions is that hiring an accountant is an expensive commodity. In reality, a good one should save or make you more than they cost, and with Gorilla Accounting, you can manage the cost of our service with our fixed-fee accounting packages.

• Tax Efficiency: Structuring ownership through a limited company can result in significant savings, and you may need an accountant to make sure you do it properly.
• Claiming Missed Deductions: Many DIY landlords miss out on allowable expenses or capital allowances they’re entitled to, purely because they don’t know about them. A Gorilla Accountant can keep you informed.
• Avoiding Penalties: Missing deadlines or submitting incorrect returns can trigger penalties. Your accountant helps you avoid these pitfalls and ensures you’re always on top of the deadlines.
• FreeAgent: All of our fixed-fee packages include the use of FreeAgent, saving you £330 a year. With Making Tax Digital, you will have to use an accounting platform like FreeAgent, so having it included in your package is an added bonus.

At Gorilla Accounting, our fixed-fee packages for Landlords include everything you need, with no hidden costs at the end of the month. On top of our buy-to-let clients receiving our full range of accountancy services, our landlord accountants will oversee the running of your monthly revenue activity, deliver a free financial health check on your property investments and provide you with capital gains tax advice.

Should I Use an Accountant or Do It Myself?

If you’re confident with numbers, tax rules, and keeping detailed records, it’s possible to manage your own property finances. However, as soon as things become more complex and your property portfolio grows, you will be looking to incorporate as a limited company and being as tax efficient as possible is high on your priority list.

The risks of getting it wrong increase significantly the more your business grows. Using an accountant is an investment. They can improve cash flow, reduce stress, and provide long-term strategic value, making sure your business continues to thrive whilst saving you time and money, allowing you to focus on other important matters.

Working with Gorilla Accounting

Working with an expert accountant as a landlord is more than just a convenience – it’s often a necessity. With our help, you can simplify your tax affairs, ensure compliance, and find new ways to make your property business more profitable.

At Gorilla Accounting firm, your dedicated accountant has all the knowledge and accounting qualifications needed to deliver online accounting services to all sized businesses. As a business owner you can be confident that they will support you every step of the way.

If you’re serious about growing your rental income while avoiding costly mistakes, partnering with the right accountant could be one of the smartest decisions you make, especially as Making Tax Digital becomes prominent for landlords in the UK.

If you’re ready to sign up with a trusted UK accountant and work together to grow your business, now is the perfect time. If you already work with an accountant but they’re not giving you the service you deserve, it’s easy to switch to us. You can get an instant quote on our website, and enquiry with a member of our New Business team, or give us a call on 03301079677 to have a chat about your options.