Landlords

Owning rental property is one of the most common ways people build long-term wealth in Scotland - but the tax side of running a property portfolio has become significantly more complex over the last few years, and it is only going in one direction. From changes to mortgage interest relief through to the rollout of Making Tax Digital for Income Tax, landlords face a growing compliance burden that is easy to underestimate.

At Facts & Figures, we work with landlords across Edinburgh, Glasgow, and Scotland - from those with a single buy-to-let property through to those managing a larger portfolio. We help you stay on top of your obligations, plan your tax position efficiently, and make the right decisions about how to structure and grow your portfolio.

The core obligations - what every landlord needs

Whether you have one property or ten, the baseline requirements are the same:

  • Self assessment tax return - rental income must be declared annually through self assessment, with all allowable expenses correctly deducted. We prepare and file your return on your behalf, making sure nothing is missed

  • SA302s and Tax Year Overviews - if you are applying for a mortgage as a landlord, lenders will typically ask for SA302s and Tax Year Overviews as proof of income. We make sure these are available and accurate whenever you need them

  • Allowable expenses - making sure you are claiming everything you are entitled to, from mortgage interest and letting agent fees through to maintenance costs, insurance, and professional fees

  • Capital Gains Tax - if you sell a rental property, CGT may apply. We advise on the reliefs available, the correct reporting process, and how to structure disposals as efficiently as possible

Making Tax Digital for landlords - what's coming and when

This is the area where many landlords are currently underprepared - and where getting the right advice now makes a significant difference.

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is being rolled out from April 2026. If you receive rental income and your total gross income from property and self-employment combined exceeds the threshold, you will be required to:

  • Keep digital records of your rental income and expenses

  • Submit quarterly updates to HMRC through MTD-compatible software

  • Complete an annual finalisation at year end instead of a traditional self assessment return

The thresholds are:

April 2026 - landlords and sole traders with gross income above £50,000

April 2027 - threshold drops to £30,000

This is not optional and the penalties for non-compliance will apply from the moment the requirement kicks in for your income level. If you are currently keeping records on spreadsheets or paper, now is the time to move to a digital system - and we can help you do that in a way that makes the quarterly reporting process as straightforward as possible.

We are already helping landlords across Scotland prepare for MTD and are happy to talk through exactly what it means for your situation.

Should your properties be in a limited company?

This is one of the most common questions we get from landlords - and the honest answer is that it depends entirely on your individual circumstances. There is no universal right answer.

Holding rental properties through a limited company can offer tax advantages in certain situations - particularly for higher rate taxpayers who are reinvesting rental profits rather than drawing them out, or for those building a larger portfolio over the long term. However, it also comes with additional costs, complexity, and in some cases higher mortgage rates - and for landlords with a small number of properties, the benefits may not outweigh the drawbacks.

We work through this analysis with our landlord clients carefully, taking into account your current tax position, your mortgage situation, your long-term plans for the portfolio, and any properties you already own personally. Getting this decision right, or wrong, can have a material impact on your overall position, so it is worth taking the time to consider it properly.

Void periods, mortgage rates, and cashflow

The practical realities of being a landlord - void periods, rising mortgage rates, unexpected maintenance costs - all have a direct knock-on effect on your tax position and your overall cashflow. We factor all of this into our conversations with landlord clients, not just the annual tax return. If something changes in your portfolio - a new property, a remortgage, a period of vacancy - it is worth letting us know so we can make sure your position is still being managed efficiently.

Fixed fees - agreed in advance

All of our landlord services are offered on transparent, fixed-fee pricing. You will know exactly what you are paying before we start, and the ongoing support of our team is built into that fee — so when a question comes up between tax returns, you can get in touch without worrying about being charged for the conversation.

Thinking of switching accountant?

If your current accountant has not mentioned Making Tax Digital yet and you fall into the income threshold, that is a reasonable concern. Switching is simpler than most people expect - and now is a good time to make the move before MTD obligations kick in. Find out how moving to Facts & Figures works.

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