Rental income reconciliation
Agent statements, direct rents and other property receipts are matched to the relevant tax year.
Rental-property tax is not simply a matter of copying a letting-agent statement into Self Assessment. Gross rents, expenditure, mortgage finance costs, joint ownership, brought-forward losses and digital reporting can all change the figures that belong on the return.
A landlord with one property and complete records may need straightforward compliance. A portfolio landlord, highly geared owner or someone correcting earlier years needs a different level of review. We scope the work from the facts rather than assuming every landlord requires the same service.
Give us enough information to understand the work. Please do not send sensitive documents through this initial form.
Prefer to call? 0800 135 7323
The job is to establish the taxable property-business result from the underlying records and make sure it agrees with the ownership, financing and wider Self Assessment position.
Mortgage capital repayments, private transfers, deposits, capital improvements and finance costs can all move through a property bank account without receiving the same tax treatment. Classification matters.
The purpose is to arrive at a defensible annual property result rather than merely produce a tax-return form.
Agent statements, direct rents and other property receipts are matched to the relevant tax year.
Repairs, management, insurance and other expenditure are reviewed according to what the cost was actually for.
Interest and relevant finance costs are separated from capital repayments and dealt with under the applicable rules.
We establish the ownership position and how the property income should be reported by each taxpayer.
Earlier property losses and previous returns can affect the current-year calculation.
Where MTD applies, the accounting system must support digital records and the new reporting cycle.
We keep calculation, client approval and filing as distinct stages so that the submitted return reflects the figures you have reviewed.
We confirm properties, ownership, letting periods and the tax year or years within scope.
Rental statements, bank records, mortgage information and expenditure are brought into one calculation.
Finance costs, losses, capital expenditure and other property-specific issues are reviewed.
The calculation and return are provided for approval before submission to HMRC.
The reporting system now matters as much as the year-end computation for landlords within MTD. Separately, individual residential landlords cannot simply deduct mortgage finance costs in the same way as an ordinary property expense.
Qualifying income for MTD is based on gross self-employment and property income before expenses. A landlord can therefore be within MTD even where the eventual taxable property profit is much lower than the gross rents.
Current commencement thresholds, digital-record requirements and software guidance for landlords.
Official MTD guidance ↗Official guidance on the basic-rate tax reduction for relevant residential-property finance costs.
Official finance-cost guidance ↗A landlord return deals with annual income. Ownership changes, disposals, overseas residence and company structures can create separate tax work.
These answers are general because ownership, finance and expenditure can change the result.
Not necessarily. A straightforward property with complete records can be relatively simple. Specialist review becomes more useful where there is significant borrowing, joint ownership, prior-year errors, large expenditure or another property transaction.
No. Mortgage capital repayment is not an ordinary property expense, and relevant residential finance costs for individuals have their own statutory tax treatment.
MTD is being introduced using qualifying-income thresholds. The applicable reference year, gross qualifying income and any exemption need to be checked for the particular landlord.
The historic years should be reviewed before simply changing the current return. Depending on the facts, a formal disclosure route may be appropriate.
No. Ordinary revenue repairs and capital improvements can receive different tax treatment, so invoices and the nature of the work matter.
Yes. It is useful evidence, but we also need to consider direct expenditure, mortgage information, ownership and anything that did not pass through the letting agent.