What Does a Property Accountant Actually Do

What is a property accountant

A property accountant is a qualified accountant who focuses on property-related businesses and investments. They understand the unique rules that apply to landlords, property developers, investors, and letting agents.

Unlike a general accountant who handles a range of industries, a property accountant deals specifically with:

Buy-to-let landlords

Property management companies

Property developers and builders

Commercial property investors

Limited companies that hold property portfolios

Their job is to ensure your property finances are structured correctly, your tax is minimised within the law, and your reporting obligations are met on time.

Key responsibilities of a property accountant

1. Preparing and managing accounts

A property accountant records and organises all financial information related to your properties. This includes:

Tracking rental income and tenant payments

Recording allowable expenses such as repairs, letting agent fees, and insurance

Producing profit and loss statements for each property or portfolio

Preparing year-end financial accounts for HMRC or Companies House

By maintaining accurate records, they ensure your tax returns are correct and that you have a clear understanding of your true profitability.

2. Tax planning and compliance

Tax rules for landlords have become increasingly complex, particularly with changes to mortgage interest relief and Capital Gains Tax. A property accountant helps you navigate these challenges by:

Identifying tax-efficient ownership structures (personal or company ownership)

Calculating rental profits and tax liabilities

Ensuring compliance with Self Assessment or Corporation Tax filing deadlines

Advising on available reliefs such as wear and tear, capital improvements, or business expenses

Their job is not just to record your numbers but to interpret them and find ways to reduce your tax bill within the law.

3. Advising on ownership structure

One of the most important decisions a landlord makes is whether to buy property personally or through a limited company.

A property accountant compares the two options based on your income, mortgage costs, and long-term goals. They calculate how each structure affects your tax, borrowing capacity, and profit after tax.

For example, they may recommend a limited company for higher-rate taxpayers who plan to reinvest profits, or personal ownership for those with a smaller portfolio.

4. Managing mortgage interest and finance costs

Since HMRC changed the rules on mortgage interest relief, landlords must handle finance costs differently. A property accountant ensures that:

The correct 20% tax credit is claimed for individual landlords

Limited company landlords deduct mortgage interest as a business expense

Remortgage and loan arrangement fees are treated properly for tax purposes

Getting this wrong can result in overpaying tax or facing an HMRC challenge, so professional advice is essential.

5. Handling Capital Gains Tax on sales

When you sell a property, you may need to pay Capital Gains Tax (CGT) on the profit. A property accountant calculates your CGT liability accurately, taking into account:

Purchase price and sale proceeds

Allowable improvement costs

Legal and selling fees

Any available reliefs or exemptions

They can also advise on the best time to sell, how to split ownership with a spouse, or how to use your annual CGT allowance effectively.

6. Assisting with VAT and commercial property

If you invest in commercial property or mixed-use developments, a property accountant can help with VAT registration, option to tax elections, and reclaiming VAT on building or renovation costs.

They ensure all returns are filed correctly and that your VAT position is managed to your advantage.

7. Helping with incorporation and business setup

If you decide to move from personal to company ownership, a property accountant manages the incorporation process. This involves:

Registering the company with Companies House and HMRC

Setting up accounting systems and bank accounts

Advising on transferring existing properties (and the tax implications)

Handling Corporation Tax registration and reporting

They make sure your transition to a limited company is smooth, compliant, and structured to minimise unnecessary costs.

8. Forecasting and financial strategy

A property accountant helps you plan ahead by forecasting income, tax, and cash flow. They use your data to identify:

How much profit you can expect after tax

Whether refinancing or selling might improve your returns

How different investment strategies affect your finances

This allows you to make informed decisions about expanding your portfolio or managing your debt effectively.

9. Managing property development accounts

If you build or renovate properties, your accountant will track all project costs to ensure accurate profit calculations. They can help manage budgets, handle VAT, and calculate profit margins once the project is sold or rented.

They also ensure that profits are reported correctly under the right tax treatment, which can differ from standard rental income.

10. Supporting with Inheritance Tax and succession planning

Property often represents a large part of a person’s estate, which means Inheritance Tax (IHT) can become an issue. A property accountant works with you to:

Understand how IHT applies to your properties

Recommend ways to pass property to family efficiently

Use trusts or company structures to protect assets

Plan for the long-term financial future of your portfolio

By starting this planning early, you can reduce the future tax burden on your estate.

Why landlords need a property accountant

Many landlords start out managing their own tax returns, but as portfolios grow, the workload and complexity increase. A property accountant adds value by:

Preventing errors and penalties from incorrect filings

Ensuring all allowable expenses and reliefs are claimed

Helping to manage cash flow and reinvestment strategies

Saving you time and stress with accurate reporting

Offering tailored advice to suit your goals and tax position

In many cases, the tax savings and efficiency gains achieved through professional advice far exceed the cost of hiring an accountant.

Choosing the right property accountant

When selecting an accountant, look for someone who:

Specialises in property and landlord taxation

Is qualified with ACCA, ICAEW, or AAT

Understands both residential and commercial property rules

Offers proactive tax planning, not just compliance services

A good property accountant should communicate clearly, help you understand your numbers, and provide strategies to improve profitability over time.

Final thoughts

A property accountant does far more than file tax returns. They act as an adviser, strategist, and compliance expert, helping landlords and property investors manage their finances with confidence.

From choosing the right ownership structure to claiming every allowable expense, their knowledge can save you thousands of pounds in tax while ensuring your property business remains fully compliant with HMRC.

For new and experienced landlords alike, having a property accountant is one of the smartest investments you can make in your property journey.