Accountants for London landlords
We prepare your rental accounts and tax return, claim your allowable expenses and mortgage interest relief correctly, and get you ready for Making Tax Digital. One property or a portfolio, owned alone or jointly.
In short: AF Coopers & Co is a firm of ACCA Chartered Certified Accountants in Woodford Green, London. We prepare landlords' rental accounts and Self Assessment tax returns, make sure allowable expenses and mortgage interest relief are claimed correctly, and get you ready for Making Tax Digital. Fees are agreed in writing before we start.
Do you need to tell HMRC about rental income?
| Your rental income | What you need to do |
|---|---|
| Up to £1,000 | Tax-free under the property allowance |
| £1,000 to £2,500 | Contact HMRC |
| Over £2,500 after expenses, or £10,000 before | Send a Self Assessment tax return |
If you need to send a return for the first time, register by 5 October after the end of the tax year in which you had the rental income. Read more about Self Assessment.
Making Tax Digital for landlords
If you are registered for Self Assessment and your qualifying income from property and self-employment is over the threshold, you must keep digital records and send HMRC quarterly updates: from 6 April 2026 if it was over £50,000 in 2024 to 2025, from 6 April 2027 if over £30,000 in 2025 to 2026, and from 6 April 2028 if over £20,000 in 2026 to 2027. Try our free Making Tax Digital checker or see our Making Tax Digital service.
Mortgage interest relief (often called Section 24)
If you own residential property personally, mortgage interest and other finance costs are not deducted from your rental income. Instead you get a tax reduction at the basic rate of 20%, worked out on the lowest of:
- your finance costs (plus any brought forward)
- your property business profits
- your adjusted total income above the personal allowance
The reduction cannot create a tax refund, but any amount you cannot use is carried forward to later years. For higher-rate taxpayers this often means paying more tax than the rent less interest would suggest, so it is worth planning ahead.
Allowable expenses
You can deduct day-to-day running costs from your rental income, including:
- Letting agent fees and advertising for tenants
- Accountants' fees and some legal fees
- Building and contents insurance
- Maintenance and repairs (not improvements)
- Utility bills, Council Tax, rent, ground rent and service charges you pay
- Cleaning and gardening services
- Replacing domestic items such as beds, sofas, carpets and fridges, for tenants' use
Capital costs, such as buying the property or improvements beyond normal repairs, are not allowable against rental income. Read our guide to allowable expenses.
Selling a rental property
You must report and pay any Capital Gains Tax due on UK residential property within 60 days of completing the sale. UK residents do not need to report online if their total gains are below the tax-free allowance. If the property is jointly owned, each owner reports their own share. Talk to us before you sell, so the figures and reliefs are ready in time.
Renting out a room in your home
Under the Rent a Room Scheme you can earn up to £7,500 a year tax-free from letting furnished accommodation in your home, or £3,750 if the income is shared. If you earn more, you send a tax return and can still choose to use the allowance.
Rules and thresholds checked on gov.uk on 3 October 2026: paying tax on rental income, finance cost relief, Capital Gains Tax on property, Rent a Room.
What we do for landlords
- Prepare your rental income and expenses accounts, property by property
- Prepare and file your Self Assessment tax return
- Work out your mortgage interest tax reduction correctly
- Register you with HMRC if you are a new landlord
- Set up digital records and send Making Tax Digital quarterly updates
- Calculate and report Capital Gains Tax when you sell, within the 60-day deadline
- Catch up on returns that are behind
Prices
Your fee depends on how many properties you have, whether they are jointly owned and how organised your records are. Our Self Assessment service starts from £149. We always confirm your fee in writing before we start.
How it works
- Free 20-minute call. Tell us about your properties, your other income and any letters from HMRC.
- Send your records. Rent statements, agent statements, mortgage statements and receipts. We send a short checklist.
- We prepare and you approve. We prepare your figures and return, explain what you owe and when, and you approve.
- We file and keep you on track. We file with HMRC and remind you about payments, Making Tax Digital updates and next year's deadlines.
Situations we often help with
- Your first year as a landlord, or an inherited or "accidental" let
- Several properties, or properties owned jointly with a partner
- Returns that are one or more years behind
- Selling a property and needing the 60-day Capital Gains Tax return
- Getting ready for Making Tax Digital
Related
- Self Assessment tax returns
- Making Tax Digital for Income Tax
- Guide: Making Tax Digital for Income Tax
Who will do the work
Your work is prepared and reviewed by our qualified accountant, Muhammad Ammar Faisal (FCCA). We have over 25 years' experience post qualification. AF Coopers & Co is registered with the Association of Chartered Certified Accountants (ACCA). More about us.
Common questions
Do I need to tell HMRC about my rental income?
The first £1,000 of rental income is tax-free (the property allowance). If your rental income is more than £1,000 and up to £2,500 a year, contact HMRC. If it is more than £2,500 after allowable expenses, or £10,000 before expenses, you must send a Self Assessment tax return.
Can I still claim my mortgage interest?
Not as an expense. For residential property you get a tax reduction of 20% (the basic rate) of the lowest of your finance costs, your property profits or your adjusted total income above the personal allowance. It cannot create a refund, but unused amounts are carried forward.
Does Making Tax Digital apply to landlords?
Yes, if you are registered for Self Assessment and your qualifying income from property and self-employment is over the threshold: £50,000 from 6 April 2026, £30,000 from 6 April 2027 and £20,000 from 6 April 2028, based on earlier tax years.
I sold a rental property. What do I need to do?
You must report and pay any Capital Gains Tax due on UK residential property within 60 days of completing the sale. UK residents do not need to report if their total gains are below the tax-free allowance. Talk to us before you sell if you can.
I rent out a room in my home. Do I pay tax?
Under the Rent a Room Scheme you can earn up to £7,500 a year tax-free from letting furnished accommodation in your home, or £3,750 if you share the income with someone else.
How much do you charge landlords?
It depends on how many properties you have, whether they are jointly owned, and how organised your records are. Our Self Assessment service starts from £149. We confirm your fee in writing before we start.
Should I own my properties through a limited company?
It depends on your income, your plans, your mortgage and the costs of transferring property, and the answer is different for each landlord. We can talk through the factors with you and, where needed, work with your solicitor and mortgage broker.
General information only, not personal advice. Tax rules, rates and thresholds change, so please check gov.uk or speak to us about your own situation.
Get your rental tax sorted this year
Tell us about your properties and we will explain what you need to do and what it costs. No obligation and no jargon.