A guide for landlords looking to move into a limited company, from Accounting Matters
At Accounting Matters, we often meet landlords who say the same thing:
“My accountant files my tax return… but no one has ever explained this to me.”
If you’re a landlord thinking about moving your property portfolio into a limited company, there are some crucial conversations that should be happening — but too often aren’t.
This blog isn’t about criticising other professionals. It’s about closing the knowledge gap and making sure landlords understand the real implications of going limited — before decisions are made, not after.
Here’s what your accountant should be telling you — and why it matters.
1️⃣ “Going Limited Is a Business Decision — Not Just a Tax One”
Many landlords are told:
“A limited company is more tax efficient.”
That’s true — sometimes. But that statement on its own is incomplete.
What your accountant should explain is that moving to a limited company changes:
- how profits are taxed
- how money is withdrawn
- how mortgages are structured
- how risk is managed
- how growth and inheritance are planned
At Accounting Matters, we start with one key question:
Do you want to run a property investment — or a property business?
Because incorporation works best when landlords are ready to think like business owners, not just property holders.
2️⃣ “Incorporation Doesn’t Automatically Save You Tax”
This is one of the biggest myths we see.
Some landlords incorporate and then:
- withdraw all profits personally
- ignore dividend planning
- don’t retain profits
- fail to forecast corporation tax
The result?
They lose the very tax advantages they expected to gain.
What your accountant should be telling you is:
The savings come from planning, not just structure.
At Accounting Matters, we show landlords before they incorporate:
- what their tax will look like personally vs in a company
- how much should be retained
- how and when to extract profits
- what the breakeven point actually is
No assumptions. Just numbers.
3️⃣ “Mortgage Interest Relief Only Helps If It’s Tracked Properly”
Yes — limited companies can deduct 100% of mortgage interest.
But we regularly see landlords lose this benefit because:
- interest isn’t separated from capital
- loans aren’t reconciled monthly
- multiple properties aren’t tracked individually
- bookkeeping is done annually
What your accountant should be telling you:
If you want full relief, your records must be accurate all year, not just at year-end.
This is why we insist on proper cloud bookkeeping and regular reviews for landlord companies.
4️⃣ “Transferring Properties Has Tax Consequences — and Timing Matters”
Another conversation that’s often skipped:
“How do I move my existing properties into a company?”
What many landlords aren’t told upfront:
- property transfers are treated as sales
- Capital Gains Tax may apply
- Stamp Duty Land Tax may apply
- mortgages may need refinancing
At Accounting Matters, we:
- explain these implications clearly
- model the cost before any transfer
- discuss alternatives (e.g. holding new purchases in the company)
- coordinate with brokers and solicitors
Because surprises after the fact are expensive — and avoidable.
5️⃣ “You Can Reinvest Profits — But Only If You Know What’s Available”
One of the biggest advantages of a limited company is being able to retain profits for reinvestment.
But here’s what many landlords aren’t told:
You can only safely reinvest if you know your true profit position.
Without regular management accounts, landlords:
- reinvest too early
- withdraw too much
- underestimate tax
- weaken cash flow
We provide quarterly insight so landlords know exactly:
- what they can reinvest
- what needs to be reserved for tax
- what can be withdrawn personally
That’s the difference between growth and guesswork.
6️⃣ “Director Loans Can Catch You Out — Quietly”
This is a classic hidden issue.
Landlords incorporate, use the company bank account freely, and don’t realise:
- drawings aren’t the same as sole trader withdrawals
- overdrawn director loans can trigger tax charges
- HMRC scrutiny increases
What your accountant should be warning you about:
Director loan accounts need monitoring — from day one.
At Accounting Matters, we review director positions regularly so issues never spiral.
7️⃣ “Incorporation Is the Start — Not the Finish”
Too many accountants treat incorporation as a one-off event.
In reality, it’s the beginning of a new phase:
- more flexibility
- more opportunity
- more responsibility
What landlords need is ongoing support:
- quarterly reviews
- tax forecasting
- dividend planning
- reinvestment strategy
- compliance monitoring
That’s why we don’t just “set you up” — we stay with you.
Why Landlords Choose Accounting Matters
Landlords come to us because they want:
- clarity instead of confusion
- proactive advice instead of year-end surprises
- someone who understands property properly
- a long-term partner, not just a filer
At Accounting Matters, we:
✔ explain things in plain English
✔ plan before decisions are made
✔ run the numbers before recommending incorporation
✔ support landlords through every stage of growth
Because going limited is too important to be treated casually.
Final Thought: Ask Better Questions — Get Better Outcomes
If your accountant hasn’t talked to you about:
- profit extraction strategy
- retained earnings
- director loan risks
- timing of incorporation
- long-term growth planning
…it doesn’t mean they’re bad — it means they may not be proactive.
At Accounting Matters, we believe landlords deserve more than compliance.
They deserve clarity, strategy, and confidence.
And that starts with the conversations most accountants never have.
Because when you’re looking to go limited…
Accounting Does MATTER.