The Ultimate Guide to Landlord Expenses: What You Can and Can’t Claim

Running rental properties isn’t just about collecting rent. Landlords face ongoing costs, from repairs to insurance, and knowing what you can and can’t claim as expenses makes a big difference at tax time.

Many landlords lose out on hundreds of pounds each year because they fail to record their expenses properly. With Making Tax Digital (MTD) approaching in 2026, accurate record-keeping will soon become more than just good practice — it will be required.

What Expenses Can Landlords Claim?

HMRC allows landlords to deduct a wide range of expenses from their rental income. These include:

• Repairs and maintenance – fixing a broken boiler, replacing carpets, or repainting walls
• Insurance – landlord, buildings, or contents insurance
• Utilities and council tax – if the landlord pays instead of the tenant
• Letting agent or property management fees
• Accountancy and legal costs related to the rental business
• Travel expenses – mileage to and from your rental property
• Advertising costs – such as online listings when finding tenants

Claiming these correctly reduces your taxable profit and lowers your bill.

What Expenses Can’t Be Claimed?

Some costs are not deductible against rental income:

• Capital improvements – for example, adding an extension or upgrading to a new kitchen (though these may reduce capital gains tax when selling)
• Personal expenses – anything not directly linked to the rental property
• Mortgage capital repayments – only the interest portion is relevant for tax purposes

Knowing the difference between allowable expenses and capital improvements is key to staying compliant and avoiding HMRC challenges.

How to Stay Organised Year-Round

The biggest problem landlords face is not claiming what they are entitled to. Lost receipts, untracked repairs, and last-minute accounting mean deductions slip through the cracks.

This is where MyPropertyPal makes the process easier:

• Financial Manager: Track income and expenses in real time, with flexible rent schedules to fit different tenancy agreements. Upload receipts and invoices, which are scanned and categorised automatically for tax purposes.
• Document Storage: Store contracts, certificates, and receipts in one secure place, so they’re always available when needed.
• Dashboard and Compliance: View all properties, payments, and compliance reminders in one dashboard. Stay on top of renewals and avoid penalties that eat into rental income.

Why It Matters Now

With MTD coming in April 2026, landlords earning over £50,000 will have to submit quarterly income and expense updates digitally. Starting to track everything properly now means:

• Fewer missed deductions
• Accurate tax submissions
• Less stress when quarterly reporting begins

Ready to Keep More of Your Rental Income?

Sign up today for early access to the MyPropertyPal Beta Release — the all-in-one platform designed for landlords to simplify rent, compliance, and tax.