What Expenses Can Landlords Claim?

Wednesday, 12th February, 2025

Being a landlord comes with various costs, but the good news is that many of these expenses are tax-deductible. Claiming the right expenses can help reduce your tax bill and improve your rental business's profitability. In this post, we'll break down the key expenses landlords can claim.

1. Mortgage Interest

   Landlords can claim tax relief on the interest portion of their mortgage payments. While full mortgage payments are not deductible, interest payments qualify for tax relief under the Mortgage Interest Tax Relief scheme.

2. Repairs and Maintenance

   You can deduct the costs of repairs and maintenance necessary to keep the property in a rentable condition, including:

   
   

   - Fixing broken appliances

   - Plumbing and electrical repairs

   - Painting and decorating

   - Roof and window repairs

   
   

   Note: Improvements (such as extensions or renovations) are considered capital expenses and are not deductible in the same way.

   
   

3. Letting Agent & Management Fees

   If you use a letting agent or property management service, their fees are fully deductible. This includes tenant-finding fees, rent collection services, and full management fees.

   
   

4. Insurance

   Landlords can claim tax relief on various types of insurance, including:

   
   

   - Landlord insurance

   - Buildings insurance

   - Contents insurance (for furnished rentals)

   - Rent guarantee insurance

   
   

5. Utilities & Council Tax

   If you, as the landlord, cover costs like gas, electricity, water, and council tax for the property, these are deductible expenses.

   
   

6. Professional Fees

   Costs related to professional services, such as:

   
   

   - Accountant fees

   - Legal fees (e.g., for eviction proceedings or tenancy agreements)

   - Surveyor fees

   
   

7. Advertising & Marketing

   Expenses related to finding tenants, such as online listings, newspaper ads, or agency fees, can be claimed.

   
   

8. Travel Costs

   If you travel to your rental property for inspections, repairs, or meeting tenants, you can claim:

   
   

   - Mileage (if using your own vehicle)

   - Public transport fares

   
   

9. Ground Rent & Service Charges

   For leasehold properties, ground rent and service charges paid to the freeholder are deductible.

   
   

10. Other Allowable Costs

    Additional claimable expenses may include:

    
    

    - Phone and internet costs related to managing your property

    - Office supplies (if you manage properties yourself)

    - Eviction or legal dispute costs (where applicable)

Final Thoughts

Maximising your allowable expenses helps you minimise your tax liability and improve profitability. However, keeping clear and accurate records of your expenses is essential to avoid issues with HMRC.

Need expert guidance on landlord tax deductions? Pro Tax Plus is here to help! Contact us today for professional advice and tax-saving strategies!