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Our top tips on how to reduce your tax bill

With constantly changing regulations affecting how much tax landlords have to pay, it can be difficult to keep up with the pace and remain « tax efficient ». If you already are a landlord or if you are thinking about becoming one, here is our selection of simple and legitimate tips that can help you reduce your tax bill while adding more pounds in your pocket.

Claim your expenses:

It is important that you keep track of all your expenses for when you have to submit your tax return. Make sure to keep all your receipts to monitor your expenses so that you can offset them against your profits. The most common ones are:

  • Utility bills (gas, water and electricity)
  • Council tax
  • Letting agents’ fees
  • Rent and service charges
  • Accountancy fees
  • Legal fees

Consider setting up a limited company:

If you want to reduce your tax bill, you should think about managing your properties via a limited company. By incorporating your buy-to-let properties into a limited company, you won’t need to pay income tax on your profits.

Get the right insurance:

Insurance is important to protect your property and ultimately, the returns on your buy-to-let portfolio. A thorough landlords’ insurance can include a number of useful features such as buildings insurance, accidental damage cover and protection against loss of rent. Whatever type of landlord insurance you opt for, insurance premiums are tax-deductible.

Transfer your assets:

If you own a property with your spouse, business partner, friend, or anyone else, you should think about transferring a bigger part of the rent to the co-owner. This can work really well if your co-owner can take more of the rent and remain a lower rate taxpayer.

Consider remortgaging:

Remortgaging is a great way to get a better interest rate. Reducing your mortgage rate even by a small amount can help you save thousands of pounds each year.


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