What Expenses Can Landlords Claim on Their Tax Return?
Let’s be honest: doing your tax return as a UK landlord can feel like trying to read IKEA instructions in the dark while being heckled by HMRC. It’s a minefield. One filled with terms like “allowable expenses,” “capital improvements,” and that creeping feeling that you might accidentally owe the government your soul.
But fear not! We’re breaking it down into something clear, practical, and even (dare we say it?) a bit witty. Because understanding what expenses landlords can claim shouldn’t require a degree in accountancy or three litres of coffee.
Allowable Expenses vs. Capital Improvements
Here’s the thing: not all spending is created equal. HMRC loves a good distinction, and this one matters. Allowable expenses are your bread and butter — costs that you can deduct from your rental income to reduce your tax bill. Capital improvements? Those are the big jobs that increase the value of your property — new kitchens, loft conversions, hot tubs (sadly) — and generally can’t be claimed in the same way.The Golden Rule:
If you’re restoring something to its original state, it’s likely allowable. If you’re improving it, probably not.What Can Landlords Actually Claim?
Right, here’s the juicy bit. These are the most common expenses landlords can claim in the UK:
1. Mortgage Interest
You can no longer deduct mortgage interest in full, but you do get a 20% tax credit.
2. Letting Agent Fees
Yes, the charming people who take 10% off the top can help you save money come tax time.
3. Maintenance and Repairs
Fixing broken boilers, patching walls, sorting that eternal leaky tap? Claim it.
Important: New kitchen because the old one’s falling apart? Probably fine. New kitchen because you fancy a granite island? Not so much.
4. Insurance
Buildings, contents, and landlord-specific policies are all fair game.
5. Council Tax, Utilities, and Services (if you pay them)
If you cover these for your tenant, or during void periods — you can claim.
6. Accountant Fees
Yes, even the lovely folks who do this number-juggling on your behalf are a tax-deductible expense.
7. Travel Costs
Popping over to check on your property or deliver that one rogue key? You can claim 45p per mile (up to 10,000 miles).
Things You Can’t Claim (Sorry!)
Let’s save you the bother. Here’s what you can’t claim as a landlord:- — Your own time spent doing work
- — New improvements (remember that granite kitchen?)
- — Private phone bills
- — Home office unless it’s specifically for your landlord business
Keeping Records (a.k.a. Don’t Rely on Memory)
HMRC doesn’t want your receipts stored in a Quality Street tin or shoved behind the bread bin. Keep your records clear, digital, and detailed. Consider using accounting software like Xero or FreeAgent, or even a shared folder with your accountant. You must keep evidence of:- — Invoices and receipts
- — Bank statements
- — Mileage logs
- — Tenancy agreements
MTD for Income Tax Is Coming for Landlords
From April 2026, landlords with income over £50,000 will fall under Making Tax Digital (MTD) rules. That means quarterly digital updates to HMRC, and you’ll absolutely need compatible software. Start getting used to it now. We explain it all here: MTD for Income Tax in 2026It’s Not About Loopholes. It’s About Knowing the Rules
Claiming expenses isn’t about dodging tax. It’s about claiming what you’re entitled to — no more, no less. And if you’re not sure what qualifies? Ask someone who reads HMRC updates so you don’t have to.
Hyams Group Ltd supports landlords across the UK with friendly, professional tax guidance — minus the confusing lingo.
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