Rob Windsor is confident that his tax affairs are in order. He was in the Army when he let his first property to students in the Chester area in 2000. However, he found the level of administration involved in owning multiple properties was overwhelming and retired from the Army in 2003 to become a full-time landlord.

He now has a portfolio of 23 properties, a mix of flats and houses. His wife, Laura, undertakes the basic bookkeeping before the records are sent to an accountant who prepares their income tax returns.

The couple take out interest-only mortgages through a specialist buy-to-let broker to ensure that they can offset repayments against the tax paid on their rental income. Mrs Windsor attends courses run by Revenue & Customs to keep on top of legal changes.

“When it’s your full-time job you read a lot about it,” Mr Windsor says. “It’s difficult as every place is different, and there is a lot of administration. I think some people fall into it and aren’t aware of the self-assessment tax system, which is very dangerous. Once you have gone down the wrong line for a few years, it would be quite hard for some to go to the Revenue and say, ‘Oops’.”

Shiran Jayasinghe represents a different side of the buy-to-let market. A part-time landlord, he is a full-time employee with the NHS. He began buying properties five years ago as an investment for his future, and now has three flats in London. However, he finds the tax system too complex, and is considering selling up.

“Because of interest rates and the tax, when you think about it, the investment doesn’t make much of a return.”

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