At Accounting Matters, we work with landlords every day who are trying to navigate the ever-changing world of property tax, mortgage rules and compliance. But one of the most inspiring journeys we’ve supported recently is that of Sarah, a sole trader landlord who completely transformed her property business by incorporating — and saw the benefits almost immediately.
Her story is one that many landlords will relate to, especially those struggling under the weight of rising taxes and tightening regulations.
This is how Accounting Matters helped her make the move — smoothly, strategically, and with complete confidence.
🟣 Meet Sarah: A Growing Landlord Feeling the Pressure
When Sarah first came to us, she owned four rental properties in her personal name. She’d built her portfolio over the last eight years, reinvesting when she could and managing her finances diligently.
But things were starting to feel overwhelming.
As a sole trader, she was dealing with:
- Higher-rate tax on her rental profits
- The harsh impact of Section 24 restrictions
- Rising mortgage costs without equivalent tax relief
- Limited ability to reinvest without large personal tax bills
- Concerns about inheritance planning for her children
In her words:
“I felt like the harder I worked, the more tax took from me. I knew there had to be a better way — I just didn’t know where to start.”
That’s when she approached Accounting Matters for guidance.
🟣 Step 1: We Reviewed Her Portfolio & Ran Full Projections
We began with a deep-dive review of her portfolio, income, mortgage structures and personal tax position.
Using our forecasting model, we compared:
✔ Staying as a sole trader
vs
✔ Moving her portfolio into a limited company
For the first time, Sarah could clearly see the impact of incorporation:
- A lower corporation tax rate instead of 40% personal tax
- Full mortgage interest relief regained inside a company
- The option to retain profits for future purchases
- Lower taxable income personally
- A more flexible structure for passing wealth to her children
This wasn’t a vague opinion — it was a clear, data-backed projection, tailored to her.
Her reaction?
“Seeing the numbers laid out made the decision so much easier. I realised I’d been losing thousands each year without even knowing.”
🟣 Step 2: We Designed the Right Company Structure
Once she decided to move forward, we created a limited company specifically tailored for her property business.
We handled:
- Company registration
- SIC codes appropriate for property investment
- Creation of director/shareholder structure
- Opening a business bank account
- Setting up Xero, Dext and SmartVault
- Preparing director loan arrangements for the transfer process
We explained how profits could be drawn tax-efficiently using a small salary and dividends, and how she could retain earnings to fund more acquisitions.
Every step was broken down in plain English, something she appreciated:
“Accounting Matters explained everything clearly. I never felt out of my depth.”
🟣 Step 3: Coordinating the Transfer of Her Properties
Transferring properties into a limited company can feel like the most daunting part — but we managed the process end-to-end.
We worked alongside:
- Her mortgage broker
- A specialist conveyancing solicitor
- Her lender
- Companies House
- HMRC
We ensured she understood the implications for Stamp Duty Land Tax (SDLT), Capital Gains Tax (CGT), and refinancing — and prepared her for every step.
We also explored tax relief opportunities and planned the timing to keep liabilities as low as possible.
“The coordination was seamless. I never felt like I had to chase or worry — Accounting Matters kept everything moving.”
🟣 Step 4: Implementing a Tax-Efficient Strategy Going Forward
Once the company was up and running, our ongoing support became just as important.
We manage for her:
- Monthly bookkeeping
- Corporation tax returns
- Director withdrawals and dividend planning
- Year-end accounts
- Quarterly check-ins
- Month-9 Tax Review
- Landlord-specific compliance guidance
We also built a 3-year reinvestment plan, helping her retain profits inside the business to fund future property purchases.
Today, she knows exactly:
- what her tax bill will be,
- when it’s due,
- how much her business can reinvest, and
- what she can take personally without triggering higher taxes.
🟣 The Results: A Stronger, More Profitable Property Business
One year after incorporating, Sarah has already seen a dramatic difference.
✔ Lower tax bill
Corporation tax was significantly lower than her previous personal tax rate.
✔ Full mortgage interest relief
Her borrowing costs are deducted fully before tax — restoring the relief she lost as a sole trader.
✔ Stronger cash flow
With profits retained inside the company, she had enough capital to put deposits on two more properties.
✔ Clean financial separation
Her personal and business finances are no longer intertwined.
✔ Smarter inheritance planning
Her company structure now allows shares to be passed to her children easily in the future.
✔ Peace of mind
Most importantly, she feels in control again.
“I wish I’d incorporated sooner. It has completely changed how I see my property business. Accounting Matters didn’t just help me move — they helped me grow.”
🟪 Why This Matters for Other Landlords
Sarah’s story isn’t unique — but her decision to take action put her ahead of the curve.
Many sole trader landlords are struggling with:
- Rising tax
- Reduced interest relief
- Mortgage pressures
- Lack of reinvestment power
- No clear succession plan
A limited company won’t be right for everyone — but for the right landlord, it can transform the numbers and the long-term strategy.
🟣 Thinking About Making the Move? We’re Here to Help
At Accounting Matters, we specialise in helping landlords restructure their portfolios in the most tax-efficient and strategic way.
If you’re considering incorporation, we can:
- Analyse your current position
- Forecast your tax under both structures
- Handle the incorporation
- Coordinate with brokers and solicitors
- Manage ongoing compliance
- Support your long-term property growth plan
Just like we did for Sarah.
Because when it comes to your property business — Accounting Does MATTER.
📩 welcome@accountingmatters.co.uk
📞 01773 747990
🌐 www.accountingmatters.co.uk