How to protect property rental income – Part Two

Chris Street

27th August 2017

Tips from property tax accountants Optimise Accountants on how to protect property rental income

By Louise Misiewicz

Are you protecting your property rental income?

What can you do to maximise its profitability?

I was talking to a new property investor client on the phone and we were discussing how he could protect property rental income and maximise the return on investment from his property business.

What came from the property tax phone call consultation was so useful for the client, that I decided to write a series of blog posts here for the benefit of our property investors.

Part One of the blog series from last week can be read in full here.

In Part Two this week, I’ll be focusing on questions to consider when reviewing your property business, and elements to consider as a basic checklist for maximising your property rental income levels.


Download our property investment guide here


These are the questions I asked my property landlord client over the phone, and they form an essential checklist to utilise when maintaining the profitability of a successful, stable property business in the UK.

The first area we discussed was around property income receipts, and I asked the following questions:

  • Have all gross rents and all other receipts from been included as property income?
  • Have any deposits received been included as income within the property business?
  • If a jointly-owned property is currently let, have the profits and losses been divided? Please read our article about joint venture relationships
  • If there are overseas rental properties, have the profits and losses been treated as income of an overseas property business?
  • If there is letting of furnished holiday accommodation, have all qualifying conditions been met? Please read our article for more details
  • If business premises have been let, and the rent treated as a business receipt, have all conditions been met?

The next area I considered with my buy-to-let landlord client covered deductions and expenses:

  • Have all items of expenditure on the improvement of any assets been treated correctly? Please read our article for more details
  • Have any legal and professional fees incurred in acquiring an asset been allocated appropriately?
  • Has all expenditure on essential repairs to a newly-acquired property been documented?
  • Have any capital repayments been excluded from loan interest and other finance charges?
  • Have any ‘dual purpose’ expenses been apportioned in respect of any property used only partly for rental business?
  • If a vehicle has been used by a landlord for non-business travel, including home to work, has only the business travel been claimed? Please read our article for more details
  • Are all expenses claimed by the landlord for business trips exclusively for the rental business?
  • Where wages and salary costs are being claimed, have employment taxes been applied appropriately?
  • If there have been wages or salaries paid to relatives or connected parties, are the amounts paid commensurate with their duties?
  • If a property has been let rent-free or at less than normal market rate, has any expenditure been restricted?

Do you have a tax question that you want answering?

Please use the redeem code “Article 33” to get 33% off your next consultation call.


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