If you’re a landlord or property investor, you’ve probably wondered if you need to hire a specialised property accountant. This guide will talk you through what a property accountant is and who may benefit from having one, as well as some alternatives.
What is a property accountant?
Property accountants work with clients such as landlords and property investors to ensure the financial aspects of property management are taken care of. This includes things like:
- Creating and maintaining financial records
- Managing budgets
- Complying with tax laws, reporting income, and paying tax
Your property accountant will also ensure you’re claiming any tax reliefs you’re entitled to, on top of any allowable business expenses – as well as advising you on the best way to be more tax-efficient.
Who are property accountants for?
Property accountants are suitable for anyone from buy-to-let landlords and property dealers to individual and corporate landlords, someone renting out their spare room, or a holiday let. This could also include individuals who want to own a second property through a limited company and need a property accountant to help.
Basically, hiring an accountant who specialises in this area gives you access to a professional who is familiar with every aspect of property tax. They can give you specific market advice and simplify the taxes landlords and property owners often face such as:
- Stamp Duty Land Tax
- Capital Gains Tax
- Non-Resident Landlord Scheme
- Inheritance Tax
Do landlords need to do a Self Assessment?
Most landlords that receive rental income will be required to complete a Self Assessment tax return each year.
A property accountant can handle this for you, making sure your return is filed correctly, submitted on time, and that you’re claiming everything you’re entitled to. If you’re new to renting out a property, having an accountant set things up properly from the start is well worth it.
Limited company vs. personal ownership
A huge decision you’ll face as a landlord is whether to hold properties in your own name (as a sole trader), or through a limited company. The right answer depends on your individual circumstances, like your income level, existing mortgages, and what you plan to do with your portfolio long term.
A property accountant can weigh the pros and cons up for you, so you can make an informed decision before acting. Getting this wrong or switching structure later can be costly, so it’s one of those areas where professional advice really does pay for itself.
What is Making Tax Digital and how can a property accountant help?
Making Tax Digital (MTD) for Income Tax requires sole traders and landlords to keep digital records and submit quarterly updates to HMRC, rather than a single annual return. It’s already in effect for sole traders and landlords with gross income over £50,000, with more landlords being brought in from April 2027.
A property accountant can manage the whole transition for you – setting up your digital records, recommending the right software, and handling your quarterly submissions to keep you on the right side of HMRC.
You can find out more on our MTD Income Tax Returns page.
Do I need a property accountant?
You don’t actually need a property accountant – many individuals and companies in the property industry use online or high street accountants that aren’t specialised in property.
There might be times when it’s useful to have more specialist knowledge available – it all depends on your circumstances.
How much does a property accountant cost?
Fees vary depending on the size of your portfolio. For example, a straightforward Self Assessment return will typically cost between £300 and £800 a year.
It can be lower than this if you have just one property and a basic tax setup, or higher if your tax affairs are more complicated.
Either way, it’s worth keeping in mind that a good property accountant will help you claim allowable expenses and reliefs you might not have known about, meaning the fees often pay for themselves.
How do I find an accountant?
We know finding an accountant can be stressful, but thankfully, we’ve done the work for you.
You can compare accountant packages here.