A buy-to-let limited company owes three things every year. It must file statutory accounts with Companies House, file a Company Tax Return (CT600) with HMRC and pay any Corporation Tax, and file a confirmation statement with Companies House. The accounts are due nine months after the financial year ends, the tax is due nine months and one day after, and the return is due twelve months after. Filing with one body does not satisfy the other.
This applies even if the company is quiet, loss-making or holds a single flat. Below we cover what each filing is, the dates, the penalties, how a director's loan account fits in, the mortgage and deposit questions that come with a limited company buy-to-let, and when to hand the work to an accountant.
What is a buy-to-let limited company?
A buy-to-let limited company is a registered UK company used to buy, hold and rent out residential or commercial property. It is often called a Special Purpose Vehicle (SPV): a company used solely for property investment and management. The structure became more popular after mortgage interest relief for individual landlords was reduced under Section 24.
Two things follow. The company, not you, owns the buy-to-let properties, so the company is the one that files. And the company has to meet its own deadlines whether or not you personally have a tax return that year.
The three annual filings at a glance
GOV.UK's guidance for private limited companies says that after the end of its financial year, the company must prepare full ("statutory") annual accounts and a Company Tax Return. You use them to meet deadlines with Companies House and HM Revenue and Customs (HMRC), and to work out how much Corporation Tax to pay.
| What | Who it goes to | When it is due |
|---|---|---|
| First accounts | Companies House | 21 months after the date you registered with Companies House |
| Annual accounts | Companies House | 9 months after the company's financial year ends |
| Corporation Tax payment (or notice that none is owed) | HMRC | 9 months and 1 day after the accounting period ends |
| Company Tax Return (CT600) | HMRC | 12 months after the accounting period ends |
| Confirmation statement | Companies House | At least once every 12 months |
The accounting period for Corporation Tax is the period covered by your Company Tax Return. It is normally the same 12 months as the financial year covered by your annual accounts, which is why most landlords treat the two as one cycle. You can file with Companies House and HMRC together or separately.
The tax payment falls three months before the return is due. Many landlords assume the return deadline is also the date to pay Corporation Tax. It is not.
Worked example: a 31 March year-end
Take a property company with a financial year ending 31 March 2026.
- Accounts at Companies House: by 31 December 2026, nine months after the year-end.
- Corporation Tax payment: by 1 January 2027, nine months and one day after the year-end.
- CT600 to HMRC: by 31 March 2027, twelve months after the year-end.
The tax is payable the day after the Companies House accounts deadline, and the return follows three months later. A calendar with three separate entries is safer than one.
Statutory accounts for a limited company buy-to-let
Every limited company has to file annual accounts, including one that only holds rental properties. Dormant and loss-making companies must file as well. A dormant company may be eligible to file simplified dormant accounts (form AA02), though the deadline still applies in full.
The accounts typically contain:
- a balance sheet, showing assets such as the properties and cash, and liabilities such as the mortgage and other debts;
- a profit and loss account, showing rental income, mortgage interest, agent fees, repairs, insurance and other allowable costs;
- notes, covering accounting policies, director loans, related-party transactions and property valuations where relevant;
- a director's report, if the company is not a micro-entity.
Micro-entity accounts
A micro-entity is the smallest category of company, allowed to file simplified accounts under FRS 105. Most buy-to-let companies qualify. A company qualifies if it meets at least two of these three tests:
- turnover of no more than £632,000 in the financial year;
- a balance sheet total of no more than £316,000 at the year-end;
- no more than 10 employees on average during the period.
The balance sheet total counts the company's assets, so a growing property investment can outgrow the micro-entity category on assets alone even when the rent is modest. If the portfolio is larger, the company may need to file under FRS 102 Section 1A, the small company standard. Which standard applies, and exactly which parts of the accounts go on the public record at Companies House, depends on the company and should be confirmed each year as the portfolio changes.
Your first accounts
The first set of accounts has a longer deadline: 21 months after the date the company registered with Companies House, not nine months after a year-end. For example, a company incorporated on 1 May 2024 has its first accounts due by 1 February 2026. From the second year the nine-month rule applies from each year-end.
Companies House assigns a default accounting reference date, which is the last day of the month in which the first anniversary of incorporation falls. You can change it by filing form AA01. You may shorten an accounting period as often as you like, but you can only extend it once in any five-year period, and the maximum period is 18 months. Because a change moves every later deadline, take advice before filing one.
The CT600, the corporation tax rate and buy-to-let tax
The CT600 is the return that tells HMRC what the company earned and how much Corporation Tax it owes. It goes to HMRC, separately from the accounts at Companies House. Many landlords are penalised by HMRC despite filing at Companies House on time, because they did not realise the CT600 was a separate requirement.
GOV.UK states that the service to file accounts and Company Tax Return has closed, and points to guidance listing approved software suppliers, how to change previous returns, and other ways to file. Check that guidance for the route open to you, or ask your accountant to file.
How rental income is reported
A company pays Corporation Tax on its rental profit instead of Income Tax. Rental income is reported in Box 190 of the CT600, not Box 165, which is for trading income. Box 300 holds net property income after adjustments, Box 410 profits chargeable and Box 440 the Corporation Tax due.
All the rental properties form one property business, so profits and losses across the portfolio are pooled automatically. If expenses exceed rental income, the loss is carried forward against future property profits and cannot generally be set against other income.
Mortgage interest and other deductions
Mortgage interest is the main difference from owning in your own name. A company deducts the full interest as a business expense, whereas individual landlords are restricted to a 20% tax credit under Section 24. The deduction has to be shown correctly in both the accounts and the CT600 for the company to get the benefit.
Other deductions include letting agent fees, buildings insurance, ground rent and service charges, accountancy fees, safety certificates and like-for-like repairs. Mortgage arrangement fees are deductible too, spread over the loan term. Improvements such as a new extension are capital items and are not deducted as repairs. The test is whether you are restoring something to its original condition or making it better.
The corporation tax rate
The corporation tax rate for 2026/27 is 19% on profits up to £50,000 and 25% on profits over £250,000, with the main rate at 25%. Between the two limits, marginal relief applies. Take £100,000 of profit:
- Tax at the 25% main rate: £25,000
- Less marginal relief: £3,750
- Tax payable: £21,250, an effective tax rate of 21.25%
That example uses 2024/25 rates, so check the rates for your own period before using the figures as a forecast.
A company must also register for Corporation Tax within three months of starting.
The confirmation statement
The confirmation statement replaced the annual return. It must be filed with Companies House at least once every 12 months to confirm that company details remain accurate. It is a non-financial return showing the registered office address and director and shareholder information.
The statement is filed through Companies House WebFiling, which needs a Companies House password and authentication code. GOV.UK says you may need to verify your identity through GOV.UK One Login first, and you get a personal code once. If the company has more than one director, you must have each director's personal code. A paper form can be posted instead.
The confirmation statement is easy to forget because it has no numbers in it. Companies House offers a free email reminder service through WebFiling, covering both your accounts and confirmation statement deadlines. Set it up when you incorporate.
What happens if you file late
Penalties for lateness are automatic and start the day after the deadline.
Companies House, late accounts
| How late | Penalty | If late two years running |
|---|---|---|
| Up to 1 month | £150 | £300 |
| 1 to 3 months | £375 | £750 |
| 3 to 6 months | £750 | £1,500 |
| More than 6 months | £1,500 | £3,000 |
HMRC, late CT600
| How late | Penalty |
|---|---|
| 1 day | £100 |
| 3 months | A further £100 |
| 6 months | HMRC estimates your tax bill and adds a 10% surcharge |
| 12 months | A further 10% surcharge on unpaid tax |
In persistent cases Companies House may apply to strike the company off the register, which is serious for a company that owns property and has a mortgage. The practical point is that a late return costs money quickly, and a company that stops filing risks more than a fine.
Directors' loan accounts
In a small property company, money moves between the landlord and the company constantly. You pay a deposit from a personal account, or the company pays a personal bill. GOV.UK defines a director's loan as money you, or close family members, take from the company that is not a salary, dividend or expense repayment, and not money you previously paid in or loaned to the company.
You must keep a record of any money you borrow from or pay into the company. This record is usually called the director's loan account. At the end of the financial year, anything you owe the company or the company owes you goes on the balance sheet in the annual accounts.
The tax consequences depend on which way the balance runs:
- Overdrawn: you owe the company.
- In credit: the company owes you.
GOV.UK says you may have to pay tax on director's loans, and the company may have to pay tax too if you are also a shareholder, which it calls a participator. Which charges apply, and the dates by which an overdrawn balance has to be cleared, are set out in HMRC's guidance for each situation, so check it against your own figures. If you lend your company money, for example for a deposit, you can charge the company a commercial rate of interest. Borrowing from the company carries tax consequences and penalties, so it is often unwise.
Our view as accountants: keep the account current. Record each transaction as it happens, and see where the balance stands before the year-end rather than after it. A loan account reconstructed from bank statements months later is how overdrawn balances go unnoticed.
Is a limited company for buy-to-let worth it?
The filings above are the running cost of the structure, so they belong in the decision. Holding buy-to-let properties in a company can be more tax efficient for some higher-rate landlords, because rental profits are subject to Corporation Tax rather than personal Income Tax, and mortgage interest can usually be treated as a business expense. Personal Income Tax runs from 20% to 45%, rising to 22% to 47% from April 2027, which is the kind of tax change that pushes landlords to look at a company structure.
It is not right for everyone. Running costs include accounting, Companies House filing and Corporation Tax returns, and mortgage pricing and the tax on taking money out of the company can reduce the benefit.
How to avoid paying 40% tax on rental income
You cannot avoid tax, but the structure changes which tax applies. Inside a limited company buy-to-let, the company pays Corporation Tax at the rates above, not the 40% or 45% that a higher-rate individual would pay on rental income. The catch is that the profit belongs to the company. When you take money out as salary or dividends, you pay personal tax on it, and that is one of the reasons the benefit can shrink. Whether the combination is cheaper depends on how much you need to draw out, so model it with an accountant before you commit.
Capital gains tax works differently too. An individual selling a buy-to-let has a £3,000 annual exempt amount in 2026/27. A company gets no such allowance, and Corporation Tax applies instead.
Can I live in a house owned by my limited company?
Yes, but it is treated as a benefit in kind and may have tax implications. The usual advice is to pay market rent to the company so the arrangement is a commercial transaction.
Set up a limited company for buy-to-let
If you decide to set up a limited company, these are the practical points:
- Online registration at Companies House costs from £100, or £156 for the same-day service, after the fees rose in February 2026.
- You need at least one director, and you can add a company secretary.
- Any shareholder with more than 25% is a Person with Significant Control (PSC). Their name, month and year of birth, nationality and service address appear on the public register.
- Some lenders ask for particular Standard Industrial Classification codes: 68100 (buying and selling own real estate), 68209 (other letting and operating of owned or leased real estate) or 68320 (management of real estate on a fee or contract basis).
- Register for Corporation Tax within three months.
Your residential address can be used as the company address. Talk to an accountant before choosing the company structure, including whether it should be an SPV, because lenders find a company that does nothing but hold property easier to assess.
Can I buy a buy-to-let property through my limited company?
Yes. A limited company can take out a buy-to-let mortgage in its own name rather than in the landlord's personal name. When the company buys, stamp duty is charged at standard rates plus a 5% surcharge.
How much deposit do I need for a limited company buy-to-let mortgage?
Lenders may require a larger deposit for a limited company buy-to-let mortgage, typically 25% to 40%. Beyond the deposit:
- most lenders stress-test affordability at an assumed rate of around 5% to 6%;
- the rent should cover at least 125% of the mortgage payment, rising to around 145% for higher and additional rate taxpayers;
- limited company buy-to-let mortgages typically carry a modest rate premium and somewhat higher arrangement fees than personal ones, and fewer lenders offer them;
- limited liability does not remove personal guarantees, which lenders often require.
Moving a property to a limited company
This is where costs surprise people. Moving a property to a limited company is not a change of name. The company has to buy the property from you, HMRC treats the transaction as a sale, and you could face capital gains tax on the increase in value since you bought it. The company also pays Stamp Duty Land Tax, including the 5% surcharge for additional properties. If the portfolio qualifies as a genuine rental business, Incorporation Relief may defer the capital gains tax. Take advice before moving anything, because this is the step that is hardest to reverse.
Records, and when to use an accountant
A company landlord must keep financial records for six years. The records include:
- tenancy agreements and rent records;
- mortgage statements showing the interest;
- expense receipts and agent statements;
- gas, electrical and EPC safety certificates;
- insurance documents.
Keep a dedicated company bank account, keep every receipt and invoice, and reconcile monthly. The company's money and your own should not share an account.
There is no legal requirement to use an accountant. But errors in the CT600 or the accounts, particularly where there is mortgage interest or more than one shareholder, can lead to missed deductions and HMRC enquiries. The case for an accountant strengthens with each of these:
- the company owns several buy to let properties;
- a director has lent money to the company or drawn from it;
- the company is close to a micro-entity limit;
- any property is worth more than £500,000, as Annual Tax on Enveloped Dwellings (ATED) can then apply, which is a separate return from the accounts and CT600;
- you are changing the year-end, or moving properties through limited companies you already own.
Begin preparing the accounts well before the deadline. Starting no later than six months after the year-end leaves time to settle salary and dividends before the year closes.
Deplexify prepares accounts and tax for UK landlords and property companies, if you would rather hand the annual cycle over.
Frequently Asked Questions
Does a buy-to-let company that made no profit still have to file?
Yes. Accounts and a Corporation Tax return are required whether the company is active, dormant or loss-making, and penalties apply regardless of profit.
Does filing accounts at Companies House also file my tax return?
No. Companies House and HMRC are separate bodies with separate deadlines. The accounts go to Companies House, and the CT600 goes to HMRC.
When do I pay Corporation Tax?
Nine months and one day after the end of the accounting period. For a 31 March year-end that is 1 January the following year.
Are the first accounts due on the usual deadline?
No. They are due 21 months after the date the company registered with Companies House. Every later set is due nine months after the financial year-end.
Can I change my financial year-end?
Yes, by filing form AA01 with Companies House. You can shorten the period as often as you like, but you can only lengthen it once in five years, and no period can exceed 18 months. Changing it alters your deadlines.
Is it worth it for a single property?
It depends on your tax position and plans. The tax advantage is aimed mainly at higher-rate landlords, and the company brings annual accounts, a return, a confirmation statement and usually dearer mortgage pricing. Run the numbers for your own case before setting up.
Sources
- Filing your accounts and Company Tax Return - GOV.UK — gov.uk, read 2026-10-18
- Accounts and tax returns for private limited companies: Overview - GOV.UK — gov.uk, read 2026-10-18
- File your confirmation statement (annual return) with Companies House - GOV.UK — gov.uk, read 2026-10-18
- Director's loans: Overview - GOV.UK — gov.uk, read 2026-10-18
- CT600 for Buy-to-Let Companies: Complete UK Tax Guide | TinyTax — tinytax.co.uk, read 2026-10-18
- Simplified Buy-to-Let Tax Filing for LTD Landlords | Taxd — taxd.co.uk, read 2026-10-18
- Buy-to-Let Limited Company Guide | John Charcol — charcol.co.uk, read 2026-10-18
- Understanding the Buy-to-Let Limited Companies House | GMPA — gmprofessionalaccountants.co.uk, read 2026-10-18
- Limited Companies for Landlords - UK Landlord Tax — uklandlordtax.co.uk, read 2026-10-18
- Buy To Let Accounting • Vantage Accounting — vantage-accounting.co.uk, read 2026-10-18