Rental property accounts and bookkeeping for landlords

Figures checked 11 October 2026 against GOV.UK and HMRC guidance.

Which landlords is this service for?

• Individual landlords with one property or a portfolio
• Couples and joint owners, including those with unequal beneficial shares
• Accidental landlords letting an inherited home or a former residence
• Landlords who use a letting agent and receive monthly statements

If you own through a limited company, see limited company and SPV accounts instead.

What is included

• Income and expenses schedule for each property, reconciled to agent statements and bank records
• Review of every cost to separate allowable revenue costs from capital improvements
• Finance costs worked out under the basic-rate tax reduction, with unused amounts carried forward
• Replacement of domestic items relief where you replaced furniture or appliances
• A comparison with the £1,000 property allowance where that gives a better result
• Property losses recorded and carried forward
• Bookkeeping in Xero through the year, or a review of the records you keep yourself
• Digital records kept to the standard Making Tax Digital requires
• A plain-English summary of each property's profit, ready for your return or MTD final declaration

Need the return filed as well? Most clients add Self Assessment for landlords, which files your tax return from these accounts.

Which rules catch landlords out in their accounts?

Can I deduct my mortgage interest?

Not as an expense, if you own the property personally. Since 6 April 2020 you instead get a tax reduction worth 20% of your finance costs, limited by your property profits and your income above the personal allowance. HMRC explains the calculation. Our guide covers how the mortgage interest restriction works.

Is a new kitchen a repair or an improvement?

A like-for-like replacement is usually a repair and is deductible. Adding something that was not there, or upgrading it substantially, is usually capital and is not deductible against rent, though it may reduce Capital Gains Tax when you sell. HMRC guidance on rental income

What happens if my rental business makes a loss?

A loss from a UK property business is generally carried forward and set against future profits of the same property business. It cannot usually be set against your salary or other income.

How should joint owners split the income?

Each owner reports their own share. Married couples and civil partners are normally taxed 50:50, whatever the legal title says, unless they own the property in unequal shares and send HMRC a declaration of beneficial interests (Form 17). We check this before filing.

How we work

1. A short call to understand your properties and ownership.
2. A written engagement letter with a fixed fee.
3. You share agent statements, bank exports and receipts through Xero or a secure upload.
4. We prepare the accounts for each property and send you a plain-English summary to approve.
5. Your return or MTD final declaration is filed from the approved figures, and we diarise next year.

Fees

Rental accounts and bookkeeping is quoted as a fixed fee. The price depends mainly on how many properties you let and whether your records arrive organised or as a box of receipts. How our fees work.