For many property investors, January is when the consequences of the previous tax year arrive all at once: deadlines, catch-up bookkeeping, and a tax bill that feels like it came out of nowhere.
But that stress isn’t inevitable. With a few simple habits in place, tax becomes far more predictable long before January rolls around again.
Lee Murphy, managing director of The Accountancy Partnership, discusses some of the habits that landlords and investors can make throughout the year that will help their admin out next January:
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Build a “tax pot” habit
“Set aside money regularly into a separate account so tax isn’t a surprise. Even small, consistent deposits make a huge difference.
By doing this, you won’t be caught short when your next tax bill is due, and it won’t feel like such a burden as it would be if it was to come out of your regular business account.”
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Choose one bookkeeping day each month
“Pick a recurring slot (for example: the first Friday of every month) and treat it like a non-negotiable appointment. A steady rhythm beats a January scramble.
This will be a lot quicker and easier than trying to do the whole year of accounts in one sitting, and after the first few times of doing it, it’ll just become part of your regular routine.”
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Separate business and personal spending
“If your transactions are clean, everything else is easier — from bookkeeping to claiming legitimate expenses to understanding what you can afford.
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Capture receipts and notes as you go
“It’s not just the receipt; it’s the “why”. Logging quick notes at the time helps prevent missed claims and messy guesswork later.
HMRC might come back on any of your spending and ask what your payment was for. If you can’t remember, then it could land you in trouble.
If you take a client out for a lunch which counts as an expense, in a year’s time you might forget this. This won’t look great to HMRC, and it could just look like a personal lunch.”
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Do a quarterly mini-check-in
“A short review every few months helps you keep track of profit, plan, and avoid sudden shocks. It also makes it easier to adjust early if your income changes.
A good business owner will be able to know exactly how much profit they’re bringing into the company, as well as the exact amount of money that’s coming out, including tax.”
Lee Murphy also adds:
“The aim isn’t perfection, it’s consistency. A simple system you repeat throughout the year almost always beats a heroic effort once a year.
“Tax planning doesn’t have to be complicated. Most of the time, it’s small routines like a tax pot, a monthly admin slot, and a clearer view of your numbers.”
