Common Mistakes General Accountants Make
Let’s start with a simple but expensive oversight:
Not claiming tax relief on mortgage arrangement fees.
Here’s how it happens:
- Your mortgage provider includes arrangement fees, bank transfer charges, and other costs in the gross mortgage advance
- The completion statement only shows the net funds received
- A non-specialist accountant records the figures from the completion statement
And just like that, thousands of pounds in deductible finance costs are missed.
In property, details matter. And not just on mortgages.
Other Tax Opportunities Generalists Miss
- Capital Allowances on Furnished Properties
- Many accountants don’t break out qualifying assets like white goods, fitted kitchens, or fire alarms
- These items can be depreciated for tax relief — if correctly identified
- Incorrect Section 24 Calculations
- If you own property personally, Section 24 limits the mortgage interest relief you can claim
- A property specialist ensures interest, finance costs, and structure are correctly planned
- Missed Incorporation Planning
- Moving to a limited company structure can reduce tax — but needs careful analysis
- A generalist may not know when to time the shift or how to avoid CGT traps
- Inaccurate VAT Position on Commercial Properties
- VAT on commercial property is a minefield — and one wrong election or missed exemption can trigger big bills
- No Exit Strategy Planning
- A specialist helps with succession, disposal planning, and inheritance tax mitigation from day one
Why Property Needs a Different Kind of Accountant
Property isn’t a side hustle anymore. For many, it’s a full-time business, long-term wealth strategy, or family legacy.
It has its own:
- Tax reliefs
- Legal rules
- Financing structures
- Risk profiles
General accountants often treat it like just another investment. But you need someone who:
- Reads your leases
- Understands mortgage packaging
- Tracks tax tribunal trends on letting rules
- Proactively plans for tax before the year-end
Real-World Example: The £5,000 Mortgage Fee Write-Off
We recently worked with a landlord who refinanced four properties. Each mortgage had a £1,500 arrangement fee. Their previous accountant hadn’t claimed them as tax-deductible expenses.
That’s £6,000 in missed relief.
A property tax expert:
- Reviewed the original mortgage documents
- Adjusted the profit calculation
- Filed an amended return
Outcome? The client received a £2,400 refund and avoided repeat losses going forward.
What a Specialist Property Accountant Should Offer
- Pre-Acquisition Advice
- Structure purchases correctly (personal vs. Ltd company)
- Review SDLT implications
- Tailored Bookkeeping & Software
- Automated categorisation for property types
- Cloud-based tools like Xero + Fixflo or Arthur integrations
- Tax Planning Year-Round
- Quarterly reviews to track allowable expenses
- Ongoing forecasting to pre-empt tax charges
- Exit and Succession Strategy
- Discretionary trusts for property shares
- Business Property Relief (BPR) maximisation
- Will planning aligned to property ownership
When to Switch Accountants
If any of the following apply to you, now’s the time to review your setup:
- You’ve bought or sold a property in the last 12 months
- You’ve added mortgage debt or refinanced
- You’re earning over £50k and are affected by Section 24
- You plan to gift property to family in the future
- You’re using a generalist accountant who hasn’t asked about your long-term goals
💬 Talk to Our Property Tax Experts Today
The UK property tax landscape is changing fast — and the cost of bad advice is only going up. If you want to scale your portfolio, reduce tax, and protect your legacy, you need a specialist on your side.
Our property tax team can:
- Review your current accounting setup
- Identify savings and risk areas
- Build a proactive tax strategy that grows with your portfolio
