Welcome to the ultimate “cheat sheet,” property owners! As your Chartered Accountant, I know that the difference between a profitable year and a taxable headache often comes down to the expenses you didn’t know you could claim.
With Making Tax Digital (MTD) officially launching in April 2026 for landlords with a combined income over £50,000, the stakes for accurate record-keeping have never been higher. HMRC isn’t just looking for your totals anymore; they’re looking for your digital proof.
Here is your customized checklist, categorized by the type of property you manage, to ensure you never miss a deduction.
Best for: Long-term tenancies in houses or flats.
[ ] Letting Agent Fees: Full management, tenant-finding, and inventory fees.
[ ] Landlord Insurance: Buildings, contents, and rent guarantee insurance.
[ ] Safety Checks: Annual Gas Safety (CP12), EICR (every 5 years), and EPC.
[ ] Maintenance: Redecorating between tenancies, fixing leaks, and boiler servicing.
[ ] Replacement of Domestic Items: Like-for-like replacement of sofas, carpets, and white goods (since the FHL regime was abolished in 2025, this is now the standard for all).
[ ] Ground Rent & Service Charges: Fully deductible for leasehold flats.
Best for: Shared houses, student lets, and professional house-shares.
[ ] HMO License Fees: The cost of the license itself is fully allowable.
[ ] Utilities (Landlord Paid): High-speed broadband, communal electricity, and water rates (common in HMOs).
[ ] Cleaning & Gardening: Regular cleaning of communal hallways, kitchens, and shared garden maintenance.
[ ] Fire Safety Maintenance: Regular testing of fire alarms, extinguishers, and emergency lighting.
[ ] Administrative Wages: If you pay someone to manage the high turnover of tenancies.
[ ] Rubbish Removal: Excess waste collection fees often required for high-occupancy homes.
Regardless of property type, don’t forget your “invisible” business costs.
[ ] Home Office Use: A proportion of your home heating, lighting, and broadband. (Note: The £6/week flat rate for employees changed in April 2026, but you can still claim a fair proportion for your rental business).
[ ] Professional Fees: My accountancy fees for your tax returns and MTD submissions!
[ ] Subscriptions: Property management software (essential for MTD compliance), Landlords’ Association fees (e.g., NRLA).
[ ] Travel: 45p per mile for trips to the property, the hardware store, or meetings with agents.
[ ] Postage & Stationery: Printing tenancy agreements and office supplies.
The tax rates for property income are officially separated from April 2027, but for the 2026/27 tax year, the main change is the MTD Mandation.
| Category | 2025/26 Tax Year | 2026/27 Tax Year |
| Mortgage Interest | 20% Tax Credit | 20% Tax Credit |
| Personal Allowance | £12,570 | £12,570 |
| MTD Reporting | Optional (Pilot) | Mandatory (If income >£50k) |
| FHL Status | Abolished (Standard rules apply) | Abolished (Standard rules apply) |
| Basic Rate Tax | 20% | 20% |
Remember, your mortgage interest is not an allowable expense that reduces your taxable profit. Instead, you get a tax credit equal to 20% of your interest.
Example: If your rental profit is £20,000 and your mortgage interest is £5,000, you pay tax on the full £20,000 first, then subtract £1,000 (20% of £5k) from the resulting tax bill.
HMRC Link: For the definitive list of what you can and cannot claim, always refer to the HMRC PIM2000 Manual.
Godwin Pinto ACA is a chartered accountant and founder of AccTek with 20+ years of experience accounting and tax for contractors, startup and SME .
AccTek is a member firm of the Institute of Certified Practising Accountants (ICPA). Our accountants have a wide range of qualifications and accreditations from trusted professional bodies such as the AAT, ICPA, and ACCA.
