A new Freedom of Information requested from HMRC, released to the public has found that 5.6 million in the UK paid more tax than they needed to in 2023/24.
Author Archive: Muhammad Zia
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We are now in that period of time between the start of the calendar year and the beginning of the tax year.
How will the Renters’ Rights Bill affect residential property?
The Renters’ Rights Bill has received Royal Assent and residential landlords must prepare for the changes it will bring to the private rental sector.
While much focus has been on tenant protections, the Bill will also bring substantial changes to how landlords operate and plan their finances.
Landlords must stay informed of their obligations and seek financial support so they are prepared for when the reforms take effect.
What are the changes proposed in the Renters’ Rights Bill?
The Renters’ Rights Bill is a legislation intended to protect tenants in the private rental sector and balance the rental market by improving property standards and introducing fairer practices between landlords and tenants.
The Bill focuses on increased security for tenants by extending minimum notice periods and restricting the grounds on which landlords can seek possession.
The Bill also proposes stricter enforcement for property conditions and will potentially raise minimum standards for heating, ventilation and safety certifications.
As a result, landlords may face more frequent inspections and stricter compliance procedures.
The Government plans to limit upfront costs for tenants and further restrictions or caps on charges could be introduced.
This could affect how landlords recover costs associated with lettings, such as referencing or renewal expenses.
Landlords must get ahead of the Bill and maintain clear documents to reduce the risk of costly mistakes and potential disputes.
What does this mean for landlords?
For residential landlords, these changes mean that tenancy management may become more regulated.
Greater security of tenure can affect the ability to regain possession of properties, especially when landlords wish to sell or change use.
Stricter property standards will likely increase compliance costs as landlords may have to invest in upgrades and maintenance to meet higher standards.
Financially, landlords may need to reassess pricing structures and cash flow forecasts to ensure long-term investments are still feasible.
If fees are capped or restricted, revenue streams may need to adjust accordingly and we can advise you on how to carefully budget for this.
How can landlords prepare for the upcoming changes?
The Renters’ Right Bill can seem overwhelming for landlords and planning ahead for the upcoming changes is important.
Landlords can prepare by:
- Reviewing their portfolio – Landlords should audit their property conditions to stay compliant with current and expected future regulations.
- Updating documentation – Clear and accurate records are important to protect your property from disputes.
- Budgeting for compliance – Landlords may need to set aside funds for maintenance and upgrades to meet property standards.
Professional support is crucial in helping you understand how the changes affect tax liabilities and overall investment return.
Our expert team can provide clarity during regulatory changes and advise you on how to increase your tax efficiency and protect rental yields.
Contact our team to find out more about how the Renters’ Rights Bill affects your property.
How does Making Tax Digital affect landlords?
Making Tax Digital (MTD) for Income Tax is one of the biggest changes landlords will face and many still aren’t fully aware of what it means for them.
If you earn any income from renting out all or part of a property, you may soon exceed the new thresholds and be required to comply with MTD for Income Tax.
With the first phase taking effect in April 2026, landlords must act now to understand their legal responsibilities and prepare.
What is MTD?
MTD is a Government initiative set to modernise the tax system by requiring businesses and landlords to keep digital records and submit information to HMRC through approved software.
Instead of filing one Self Assessment return, MTD introduces a more frequent and digital approach to tax reporting.
MTD for Income Tax will apply to landlords and sole traders with a total gross income of over £50,000.
The threshold will drop to £30,000 in 2027 and £20,000 in 2028, bringing thousands more landlords into the system over time.
Why are landlords affected?
Many landlords may not realise they are classed as a business for tax purposes and it is crucial they know how MTD will affect them as the reforms are fast approaching.
If your gross rental income before expenses exceed the MTD threshold, you must remain compliant even if you have a single property or rent out a property alongside employment.
MTD applies to:
- UK and overseas rental income
- Furnished holiday lets
- Joint property income – each landlord reports their own share
It does not apply to income from lodgers under Rent a Room relief, PAYE income, pensions, dividends or capital gains.
What will landlords have to do under MTD?
Landlords must keep accurate digital records of all rental income and property-related expenses.
It will be a requirement to use HMRC-approved MTD software to maintain these records and submit information to HMRC.
Landlords must send digital quarterly updates throughout the year, followed by an End of Period Statement (EPOS) to confirm their figures.
They will also need to submit a final declaration, which replaces the traditional tax return process and confirms their total income from all sources.
MTD can be confusing and landlords should seek financial support immediately to understand their reporting obligations and stay compliant.
How can landlords prepare for April 2026?
Landlords should prepare for MTD by first checking whether their property income is likely to exceed the relevant threshold by April 2026.
It is important to start the transition and move away from paper records and basic spreadsheets to keep digital records before it becomes mandatory.
Landlords should explore different MTD software options to find a system that suits their level of experience and the size of their property portfolio.
MTD is bringing new changes and financial advice is important for landlords to understand the reporting deadlines and the type of information required.
Our professional team can help you be prepared for the deadline and prevent late-filing penalties.
To learn whether your property falls within the threshold, contact our team today.
What do the business rates changes mean for commercial and residential property?
The recent Autumn Budget brought significant updates to business rates that will affect cash flow and investment decisions.
The changes may bring financial burdens that many did not expect and affect long-term planning.
Business owners and landlords should prepare for how the reforms will affect them and seek financial advice to create a clear strategy.
Reduction in the multiplier
The Government announced a reduction in the annual multiplier of between 11.7 per cent and 13.5 per cent, which is a steeper cut than expected.
Most businesses will see their bills rise due to increased rateable values (RVs) in the 2026 Rating List and additional supplements.
The Budget also revealed that a temporary 1p supplement will be added to the relevant tax rate in 2026/27 for properties not receiving transitional relief or Supporting Small Business relief.
What are the retail and leisure relief changes?
The Retail, Hospitality and Leisure (RHL) relief will fall again in 2026 – 2027 and only offer a 10 to 20 per cent relief depending on the RV.
This may come as a surprise to many operators and follows on from the 75 per cent to 40 per cent reduction introduced for 2025 – 2026.
Although the cuts reduce pressures on large property occupiers who were previously funding much of the relief, small high street businesses may be faced with tighter margins.
Will larger properties face higher costs?
Property owners will see the introduction of a supplement that will affect properties with an RV above £500,000, including big retail units and distribution centres.
The uplift will feed into supply chains and operational costs for many commercial tenants.
The 30 per cent cap on annual increases will make it easier to expand into larger properties, but the late publication of the new Rating List leaves businesses with only a few months to budget.
Forecasting finances will be more difficult for landlords, but with professional help, you can understand how your property is currently affected and budget accordingly.
How can the property market and businesses prepare?
Commercial property has been struck hard by these reforms, but there is no direct change to Council Tax or residential rates.
However, changes in commercial viability, such as high street pressures or increased logistical costs, may indirectly affect local economies and residential property demand over time.
With a new valuation cycle from April 2026 and relief structures changing, it is important to seek financial advice during these uncertain times.
Our professional team can help review projected rate liabilities and assess property ownership structures for tax efficiency.
We can help guide you on budgeting for high operating costs, especially for large commercial sites and prepare early for valuation.
Ensure you get ahead of these reforms and stay resilient in the changing property economy. Contact our accounting team today for expert support and guidance.
What does the Autumn Budget mean for the property market?
The 2025 Autumn Budget introduced a series of tax changes set to improve public finances and support long-term economic growth.
The measures announced will have a knock-on effect on investment decisions and affordability across the property sector.
With a housing market that is already faced with flat pricing and households holding off buying, it is important to know how these reforms affect you.
What is the ‘mansion tax’?
The Chancellor confirmed a new annual surcharge on higher-value homes, commonly referred to as the ‘mansion tax’.
The charges include:
- £2,500 for properties above £2 million
- £7,500 for those above £5 million
These changes will move away from one-off transactional taxes and towards recurring annual liabilities.
The introduction of this surcharge is expected to ease demand in the prime property market, particularly in London and the South East, as buyers reconsider purchases or look for properties below the threshold.
For developers in the high-value market, they may see slower sales rates and will need to review pricing strategies to avoid unintentionally pushing units into surcharge territory.
Those who deal with developments in the £1 – 2 million bracket might also see an increase in demand from buyers who are keen to avoid the levy.
Higher taxes on property and investments
The Budget confirmed a 2 per cent rise in tax rates applied to property income, dividend income and savings income.
This will affect basic, higher and additional rates and increase the tax burden for individual landlords and investors.
For landlords, these changes will place further pressure on net rental yields at a time when operating and financing costs are already heightened.
Some landlords may look to incorporate their portfolios or consider selling properties that no longer deliver viable returns.
Developers may also notice a reduction in investor demand for individual buy-to-let units and growing interest in build-to-rent properties, which can be more tax efficient.
Frozen Income Tax and National Insurance thresholds
One of the most impactful Budget measures is the extension of the freeze on Income Tax and National Insurance thresholds until 2030 – 2031.
Fiscal drag will pull more earners into higher tax bands and reduce disposable income for many people.
This could affect:
- Housing affordability – Making it harder for buyers to save for deposits
- Mortgage approvals – Buyers may struggle to meet affordability tests
- Prime and upper-mid market demand – High earners will have less take-home pay available despite rising salaries
- Rental demand – More households may choose or are forced to rent and delay buying a home
What does this mean for developers and residential investors?
Developers and investors will need to reassess the feasibility of their projects, considering higher taxes and rising employment costs.
With the potential for a slower market and reduced disposable income, buyers and tenants may take longer to commit and this could affect sales and rental timelines.
It is important to review your property portfolio so that your assets are held in the most tax-efficient structure.
Pricing strategies should also be carefully reviewed so that units are not left empty due to affordability pressures or being inadvertently pushed over the £2 million surcharge threshold.
These reforms may require you to rethink how you operate and acquire property and look towards alternatives such as build-to-rent models.
While the Autumn Budget’s reforms may feel daunting, our financial professionals can help you understand how your property is affected.
Our expert team can offer advice on how to update your property plans to comply with new regulations and succeed in an uncertain market.
Ensure your property is protected and contact our team for expert support and guidance today.
