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✅ Updated March 2026

FinanceTax and AccountsUK 2026

Rent to Rent Annual Accounts:
What Your First Year Looks Like

Seeing a real-world example of a rent to rent company accounts helps you understand what your accountant produces, what HMRC expects, and how to read your own financial performance. This guide walks through a typical first-year accounts set.

What This Guide Covers

  1. What Rent to Rent Annual Accounts Include
  2. Example Profit and Loss: Year One, Three Properties
  3. Allowable Expenses You Must Not Miss
  4. Frequently Asked Questions
Section 1

What Rent to Rent Annual Accounts Include

A UK limited company must file accounts with Companies House annually. Your accounts typically contain: a balance sheet (snapshot of what the company owns and owes), a profit and loss account (income minus expenses), and notes to the accounts. Small companies (under 10.2 million pounds turnover, under 5.1 million pounds balance sheet, under 50 employees) can file abbreviated accounts publicly while filing full accounts with HMRC. For more detail, see how to handle HMRC for rent to rent.

For a typical single-director rent to rent company in year one, the accounts are straightforward but there are specific line items that matter.

Section 2

Example Profit and Loss: Year One, Three Properties

This example assumes three 5-bed HMOs in mid-tier UK cities with an average net profit of 720 pounds per property per month, operating for a full 12 months.

25,920Gross turnover (rent received from tenants)
10,800Landlord rent paid (cost of sales)
15,120Gross profit
8,640Net profit after all costs

Typical expense categories: utilities 3,600 pounds, insurance 720 pounds, professional fees (accountant, solicitor) 1,800 pounds, maintenance and repairs 720 pounds, marketing and advertising 360 pounds, travel (property visits) 480 pounds, software and subscriptions 300 pounds, mobile phone (business proportion) 180 pounds, director salary 12,570 pounds (personal allowance level). After salary, net profit before Corporation Tax: approximately 4,200 pounds. Corporation Tax at 19 percent: approximately 800 pounds. For more detail, see how rent-to-rent tax works in the UK.

Director Salary StrategyMost rent to rent directors pay themselves a salary at the National Insurance primary threshold (around 12,570 pounds per year) to avoid NI contributions while using the personal allowance. Remaining profits are extracted as dividends. Confirm the optimal figure with your accountant as thresholds change annually.
Section 3

Allowable Expenses You Must Not Miss

These are the expenses most commonly missed by new rent to rent operators:

  • Pre-trading expenses – costs incurred before the company started trading (training courses, initial legal fees, first-year accountancy setup) can be claimed as if incurred on the first day of trading
  • Home office costs – if you work from home, a proportion of your home running costs (utilities, broadband, insurance) is claimable. Alternatively, HMRC allows a simplified flat rate of 6 pounds per week without requiring records.
  • Vehicle mileage – travel to and from properties is a legitimate business expense. Claim at HMRC approved mileage rates (45p per mile for the first 10,000 miles, 25p thereafter) and keep a mileage log.
  • Training and professional development – property investment courses, mentorship programmes, and professional development directly related to your business are claimable expenses
  • Equipment and technology – laptop, phone (business proportion), printer, property management software all claimable
  • Subscriptions – SpareRoom listings, Pricelabs, Fixflo, accounting software, and any other business tool subscriptions

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Frequently Asked Questions

When do I need to file my first accounts?

Your first accounts are due 21 months after your company incorporation date. Subsequent accounts are due 9 months after your accounting year end. Your accountant will manage this, but set a reminder in your calendar for the filing deadline. For more detail, see finding the right accountant.

Do I need an accountant or can I file accounts myself?

Technically you can file accounts yourself, but a specialist property accountant consistently saves more in tax than their fee costs. For a rent to rent business with even 3-4 properties, professional accountancy is a strong return on investment. The risk of missing allowable expenses or making errors on Corporation Tax returns makes DIY accounts a false economy. For more detail, see our rent-to-rent ROI calculator.

How are dividends taxed in a rent to rent limited company?

Dividends extracted from your company are taxed at the dividend tax rates: 8.75 percent (basic rate), 33.75 percent (higher rate), 39.35 percent (additional rate). The first 500 pounds of dividends per year is tax-free (the dividend allowance, reduced from 2,000 pounds in 2024). A typical rent to rent director taking a 12,570 pound salary plus 20,000 pounds in dividends pays significantly less total tax than a sole trader earning the same amount.

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