Since April 2020, individual landlords can no longer deduct mortgage interest from rental income before working out tax. Instead, the full rent counts as taxable income, and only a 20 percent basic-rate credit is applied afterward. A higher-rate landlord paying £10,000 a year in mortgage interest now gets £2,000 less relief than they would have received before this change.
We prepare mortgage-ready accounts for remortgaging or new purchases, model the real tax impact of Section 24 against your income, and advise on whether incorporating your property portfolio into a limited company would reduce your tax exposure. This connects directly into our wider landlord accounting service.
Because rental income is now taxed before mortgage interest is accounted for, a landlord can show a healthy income figure on paper while the actual cash left after the mortgage payment is much smaller. Higher-rate taxpayers are affected the most, since the 20 percent credit covers only half of what they previously saved. This is exactly why the real tax position needs modelling before a purchase or remortgage decision, not worked out after the fact. We calculate the actual tax cost against your specific income before you commit to anything.
This service is for landlords and property buyers in or around Slough who need their finances presented clearly for a lender or a decision.
We prepare income and accounts documentation formatted to what lenders typically request.
We calculate your actual tax position under the mortgage interest restriction, based on your real income.
We compare holding property personally against a limited company structure, based on your numbers.
Financial guidance connects directly into our year-round landlord accounting service.
No, basic-rate taxpayers are largely unaffected, while higher and additional-rate taxpayers lose a significant portion of the relief they previously received.
It depends on your tax band, mortgage costs, and long-term plans. We model both options against your actual numbers rather than giving a generic answer.
Yes, we prepare accounts and income summaries in the format most lenders expect from self-employed or landlord applicants.
Yes, since the Furnished Holiday Lettings regime was abolished from 6 April 2025, holiday lets are now subject to the same restriction as standard rentals.
Our team is part of Direct Assist Accountants' ACCA-regulated practice in Slough
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