A buy-to-let limited company is a standard private company limited by shares incorporated at Companies House. From the company's perspective, rental income is trading income subject to Corporation Tax (currently 25% for companies with profits over £250,000, 19% for profits under £50,000, with marginal relief between £50,000 and £250,000 for the 2024/25 and 2025/26 tax years). Unlike individuals, the company can deduct 100% of mortgage interest against rental income — the Section 24 restriction does not apply to companies. The company must prepare annual statutory accounts and file them at Companies House, and separately file a CT600 Corporation Tax return with HMRC.
Many BTL company directors use their accountant to handle filing. However, understanding the format of the accounts, what the accounts show, and the deadlines involved allows directors to monitor their company's compliance position and to engage more effectively with their accountant.
Annual accounts format — micro-entity, small company, or full accounts
The format of a company's statutory accounts depends on its size, measured by turnover, balance sheet total, and employee count:
- Micro-entity accounts (FRS 105): Available where the company satisfies at least two of: turnover ≤ £632,000; balance sheet total ≤ £316,000; employees ≤ 10. Most single-property or small portfolio BTL SPVs qualify. Micro-entity accounts consist only of a simplified balance sheet — no profit and loss account, no notes to the accounts, no Directors' report. Micro-entity accounts filed at Companies House contain very limited financial information — the P&L is not publicly visible. This is a privacy advantage for landlords who prefer not to disclose rental income in publicly searchable documents
- Small company accounts (FRS 102 section 1A): Available where the company satisfies at least two of: turnover ≤ £10.2 million; balance sheet total ≤ £5.1 million; employees ≤ 50. Small companies that do not qualify as micro-entities must prepare full statutory accounts including a balance sheet, profit and loss account, notes to the accounts, and a Directors' report. Small companies can file abbreviated accounts at Companies House (balance sheet and notes only — the P&L is not publicly visible)
- Full accounts: Required for medium and large companies. Very few BTL SPVs will be required to prepare full statutory accounts — this is typically only relevant for portfolio landlord companies with a large number of properties and employees
- What the accounts must contain: Even micro-entity accounts must contain a balance sheet that shows the company's assets (properties, cash, other assets) and liabilities (mortgages, creditors, shareholder loans). The balance sheet must be signed by a director and include the registration number and date of approval. The Directors' report (for small companies — not micro-entities) must state the principal activities of the company and confirm that the directors are satisfied the accounts give a true and fair view
Companies House filing deadline — 9 months after year-end
The company's statutory accounts must be filed at Companies House within the following deadlines:
- Private limited companies — first accounts: Where the company's first accounting reference period is longer than 12 months, the accounts must be filed within 21 months of incorporation OR 3 months from the accounting reference date, whichever is later
- Subsequent years — 9 months after accounting reference date: For subsequent years, a private limited company must file its annual accounts at Companies House within 9 months after the accounting reference date (the company's year-end). For example, a company with a 31 March year-end must file accounts by 31 December of that year
- Late filing penalties: Companies House imposes automatic late filing penalties: up to 1 month late — £150; 1-3 months late — £375; 3-6 months late — £750; more than 6 months late — £1,500. Where a company files its accounts late in two consecutive years, the penalties are doubled. Persistent failure to file accounts can lead to Companies House striking off the company (administrative dissolution)
- Confirmation statement: Separately from annual accounts, every company must file an annual confirmation statement (formerly called the annual return) within 14 days of the anniversary of incorporation (or the previous confirmation statement). The confirmation statement confirms that the company's registered details (registered office, directors, shareholders, share capital, PSC register) are up to date. The filing fee is £34 online. Missing the confirmation statement deadline can also lead to strike-off
Corporation Tax return (CT600) and payment deadlines
The Corporation Tax CT600 return is filed with HMRC and is separate from the Companies House accounts:
- CT600 filing deadline — 12 months after the end of the accounting period: The CT600 Corporation Tax return must be filed with HMRC within 12 months after the end of the company's accounting period (not 12 months after the year-end accounts are prepared, but 12 months after the actual accounting period end). For a company with a 31 March 2025 year-end, the CT600 must be filed by 31 March 2026
- Corporation Tax payment deadline — 9 months and 1 day after year-end: Corporation Tax is due and payable 9 months and 1 day after the end of the company's accounting period. This is EARLIER than the CT600 filing deadline. For a company with a 31 March 2025 year-end, Corporation Tax is due on 1 January 2026 — even though the CT600 does not need to be filed until 31 March 2026. Late payment attracts HMRC interest (currently 6.5% above Bank of England base rate)
- Large companies — quarterly instalment payments: Very large companies (profits over £1.5 million) must pay Corporation Tax by quarterly instalment payments during the accounting period — not after year-end. Most BTL SPVs will not be large companies
- What the CT600 contains: The CT600 discloses: taxable total profits for the period; allowable deductions (mortgage interest, management fees, repairs, professional fees, insurance, EICR/gas safety costs); capital allowances (where applicable — note that residential property does not qualify for Plant and Machinery allowances, though integral features of commercial mixed-use elements may qualify); losses brought forward; tax payable at the applicable Corporation Tax rate
Extracting profits — retained earnings, dividends, and salary
Unlike a personal rental portfolio where profits flow directly to the landlord as income, a BTL company's profits belong to the company until extracted. There are several routes for directors/shareholders to access profits:
- Salary: A director can pay themselves a salary from the company. The salary is deductible from the company's taxable profits. For 2025/26, most property company directors take a salary up to the National Insurance threshold (£12,570 — the personal allowance) to avoid both employer's and employee's NI contributions while the salary remains deductible for Corporation Tax. Salary above this triggers NI contributions
- Dividends: After Corporation Tax has been paid on the company's profits, the remaining retained earnings can be distributed to shareholders as dividends. Dividends are taxed in the hands of the shareholder at 8.75% (basic rate), 33.75% (higher rate), or 39.35% (additional rate) after the dividend allowance (£500 for 2025/26). Dividends are NOT deductible for Corporation Tax — they are paid from post-tax profits
- Director's loan account: Money lent by the director to the company (for example, the initial deposit on a property purchase) is recorded in the director's loan account. The director can repay themselves from this loan account without tax consequences (it is a repayment of a loan, not income). However, loans from the company to the director are subject to the s.455 CTA 2010 charge (25% of the outstanding loan if not repaid within 9 months of year-end)
- Retained profits: Many BTL companies choose to retain profits within the company to fund future deposits or capital expenditure. Retained profits accumulate in the company's reserves. On a future sale of the company (rather than the properties), the gain is subject to Corporation Tax at the company level — not CGT — though Shareholders disposing of their shares may benefit from Business Asset Disposal Relief (BADR) if qualifying conditions are met
Frequently asked questions
What is the filing deadline for a buy-to-let limited company's annual accounts?+
A private limited company must file its annual accounts at Companies House within 9 months after its accounting reference date (year-end). For example, a company with a 31 March year-end must file accounts by 31 December. Late filing attracts automatic penalties starting at £150 for up to 1 month late, rising to £1,500 for more than 6 months late.
When is Corporation Tax due for a property company?+
Corporation Tax must be paid 9 months and 1 day after the end of the accounting period — before the CT600 filing deadline (which is 12 months after year-end). For a company with a 31 March 2025 year-end, Corporation Tax is due on 1 January 2026. Late payment attracts HMRC interest.
What are micro-entity accounts and can a BTL company use them?+
Micro-entity accounts (FRS 105) are a simplified format available to companies satisfying at least two of: turnover ≤ £632,000; balance sheet ≤ £316,000; employees ≤ 10. Most single-property or small portfolio BTL SPVs qualify. Micro-entity accounts consist of a simplified balance sheet only — the profit and loss account is not publicly visible, which is a privacy advantage.
How does a BTL company director extract profits?+
Primarily via salary (deductible from taxable profits, typically up to the NI threshold of £12,570 for 2025/26) and dividends (paid from post-tax retained profits, taxed in the director's hands at 8.75-39.35% after the £500 dividend allowance). Many directors also use director's loan account repayments to extract previously lent capital tax-free.