Advice for landlords

What unincorporated landlords need to know about allowable expenses, mortgage interest relief and Making Tax Digital.

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.

Mortgage interest relief

Since the Section 24 changes, you can no longer deduct mortgage interest from your rental profit directly. Instead, you get a 20% tax credit on your finance costs, applied after your tax is calculated, which can mean a bigger bill than the old rules if you're a higher-rate taxpayer.

Making Tax Digital for landlords

Unincorporated landlords above HMRC's qualifying income threshold need to send quarterly updates and a Final Declaration for their property income, the same as sole traders. HMRC confirms your own status once you connect your account.

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