Advice for landlords
What unincorporated landlords need to know about allowable expenses, mortgage interest relief and Making Tax Digital.
This is general information, not tax, legal or financial advice for your own situation. See our Terms of Service for what BusyBee Hub does and doesn't do.
Allowable expenses for landlords
Letting agent and accountant fees, insurance, repairs and maintenance, ground rent and service charges, and utility bills you cover as landlord are all allowable against rental income. Improvements, as opposed to repairs, usually aren't; keep the distinction clear in your records, since it's the boundary HMRC checks most often on a property return, and one that's easy to get wrong without meaning to.
Mortgage interest relief
- Before the Section 24 changes
- Deducted directly from rental profit
- Now
- A 20% tax credit on finance costs, applied after tax is calculated
Making Tax Digital for landlords
Unincorporated landlords need to send quarterly updates and a Final Declaration for their property income, the same as sole traders, once their qualifying income — self-employment and property income before expenses, including your own share of a jointly owned property — was over £50,000 on their 2024-25 return (from April 2026), over £30,000 on their 2025-26 return (from April 2027), or over £20,000 on their 2026-27 return (from April 2028). HMRC confirms your own status once you connect your account.
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