What's the difference between repairs and improvements?

Repairs restore the asset; improvements enhance it. Repairs are deductible against rental profit; improvements are capital and reduce a future CGT bill.

How long should I keep receipts?

Six years from the end of the tax year — indefinitely if the property is likely to be sold.

Do I need a separate bank account per property?

Not required, but strongly recommended for portfolios of 3+ units. One landlord account is the practical minimum.

What is MTD for landlords?

Making Tax Digital for Income Tax — quarterly digital submissions to HMRC, from April 2026 for the largest landlords.

Can I do all of this in Excel?

Technically yes — but reconciliation and MTD compliance are far cheaper in a purpose-built tool.

How does Landvale categorise transactions?

AI classification on top of the property chart of accounts, with per-tenant matching for rent and per-contractor matching for expenses.

Does Landvale export to my accountant?

Yes — CSV, Xero, QuickBooks and FreeAgent formats are supported.

Accounting

Property Bookkeeping Explained

The bookkeeping fundamentals every UK landlord needs — chart of accounts, receipts, reconciliation and reports.

The Landvale Team·Updated 1 July 2026·8 min read

Key takeaways

Landlord bookkeeping is simpler than general business bookkeeping — but the details matter for tax.

A property chart of accounts separates repairs, capital, financing and management costs.

Every transaction needs a receipt, a category and a property tag.

Monthly bank reconciliation is the single highest-leverage habit.

Making Tax Digital raises the bar for digital records from 2026.

The property chart of accounts

A landlord chart of accounts groups transactions into a small, standard set of buckets that map cleanly to HMRC's rental profit calculation:

•Rental income (per unit).

•Repairs and maintenance (revenue expenditure — deductible).

•Capital improvements (added to base cost, not deductible against income).

•Financing costs (mortgage interest — restricted for individual landlords under Section 24).

•Management, letting and legal fees.

•Insurance, ground rent and service charges.

•Utility costs (only if paid by the landlord).

•Professional fees (accountancy, subscriptions, memberships).

The receipt discipline

HMRC can request evidence for any transaction on your return for up to six years after submission. The winning workflow is: capture the receipt at the point of purchase, tag it to a property and a category, and keep the digital copy indefinitely.

Monthly bank reconciliation

Reconcile the property bank account monthly. It catches missed rent, duplicate charges, and expenses that never made it onto the books. Landlords who reconcile monthly rarely finish tax year in a panic.

Open Banking makes reconciliation nearly automatic — Landvale pulls the transactions live and matches them to the property and tenant in seconds.

Bookkeeping that runs itself

Landvale connects to your bank read-only, imports every transaction, and applies the property chart of accounts automatically. You approve or re-categorise — Landvale handles the rest, including the year-end export to your accountant.

Pillar guide

The Complete Guide to Landlord Accounting

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