At Hammond & Co, we work with landlords every day who are navigating the complex world of property tax, mortgages, and compliance. One of the most inspiring journeys we’ve supported recently is that of Sarah, a sole trader landlord who completely transformed her property business by incorporating — and saw the benefits almost immediately.
Her story resonates with many landlords struggling under rising taxes and tightening regulations. Here’s how Hammond & Co helped her make the move — smoothly, strategically, and with confidence.
🟦 Meet Sarah: A Growing Landlord Feeling the Pressure
When Sarah first came to us, she owned four rental properties in her personal name. She’d built her portfolio over eight years, reinvesting where possible and managing her finances carefully.
But things were starting to feel overwhelming.
As a sole trader, she faced:
- Higher-rate tax on her rental profits
- The impact of Section 24 restrictions
- Rising mortgage costs without equivalent tax relief
- Limited ability to reinvest without large personal tax bills
- Concerns about inheritance planning for her children
Sarah said:
“I felt like the harder I worked, the more tax took from me. I knew there had to be a better way — I just didn’t know where to start.”
That’s when she approached Hammond & Co for guidance.
🟩 Step 1: We Reviewed Her Portfolio & Ran Full Projections
We began with a deep-dive review of her portfolio, income, mortgage structures, and personal tax position.
Using our forecasting model, we compared:
✔ Staying as a sole trader
vs
✔ Moving her portfolio into a limited company
For the first time, Sarah could clearly see the impact of incorporation:
- Lower corporation tax rate instead of 40% personal tax
- Full mortgage interest relief regained inside a company
- Ability to retain profits for future property purchases
- Lower personal taxable income
- A more flexible structure for passing wealth to her children
Her reaction:
“Seeing the numbers laid out made the decision so much easier. I realised I’d been losing thousands each year without even knowing.”
🟧 Step 2: We Designed the Right Company Structure
Once Sarah decided to move forward, we created a limited company specifically tailored for her property business.
We handled:
- Company registration
- SIC codes appropriate for property investment
- Director/shareholder structure
- Business bank account setup
- Xero, Dext, and SmartVault setup
- Director loan arrangements for the property transfer
We explained tax-efficient profit extraction through a small salary and dividends, and how earnings could be retained for future acquisitions.
Sarah said:
“Hammond & Co explained everything clearly. I never felt out of my depth.”
🟦 Step 3: Coordinating the Transfer of Her Properties
Transferring properties into a limited company can feel daunting — but we managed the process end-to-end.
We worked alongside:
- Her mortgage broker
- A specialist conveyancing solicitor
- Her lender
- Companies House
- HMRC
We ensured she understood Stamp Duty Land Tax (SDLT), Capital Gains Tax (CGT), and refinancing implications, while exploring reliefs and planning timing to minimise liabilities.
Sarah said:
“The coordination was seamless. I never felt like I had to chase or worry — Hammond & Co kept everything moving.”
🟩 Step 4: Implementing a Tax-Efficient Strategy Going Forward
Once the company was operational, our ongoing support became just as important.
We manage for Sarah:
- Monthly bookkeeping
- Corporation tax returns
- Director withdrawals and dividend planning
- Year-end accounts
- Quarterly check-ins
- Month-9 Tax Review
- Landlord-specific compliance guidance
We also built a 3-year reinvestment plan, helping her retain profits to fund future property purchases.
Now, she knows exactly:
- What her tax bill will be
- When it’s due
- How much her business can reinvest
- What she can take personally without triggering higher taxes
🟧 The Results: A Stronger, More Profitable Property Business
One year after incorporating, Sarah has seen dramatic improvements:
✔ Lower tax bill — corporation tax significantly less than her previous personal tax rate
✔ Full mortgage interest relief — borrowing costs fully deducted before tax
✔ Stronger cash flow — retained profits funded deposits on two additional properties
✔ Clean financial separation — personal and business finances no longer intertwined
✔ Smarter inheritance planning — shares can now be passed to her children easily
✔ Peace of mind — she feels in control again
Sarah said:
“I wish I’d incorporated sooner. It has completely changed how I see my property business. Hammond & Co didn’t just help me move — they helped me grow.”
🟦 Why This Matters for Other Landlords
Sarah’s story isn’t unique — but her decision put her ahead of the curve.
Many sole trader landlords are struggling with:
- Rising tax
- Reduced interest relief
- Mortgage pressures
- Lack of reinvestment power
- No clear succession plan
A limited company won’t suit everyone — but for the right landlord, it can transform the numbers and long-term strategy.
🟩 Thinking About Making the Move? We’re Here to Help
At Hammond & Co, we specialise in helping landlords restructure their portfolios strategically and tax-efficiently.
If you’re considering incorporation, we can:
- Analyse your current position
- Forecast your tax under both structures
- Handle the incorporation
- Coordinate with brokers and solicitors
- Manage ongoing compliance
- Support your long-term property growth plan
Just like we did for Sarah.