Being a landlord comes with many responsibilities, and understanding your tax obligations is crucial to ensuring your rental income is managed efficiently and remains compliant with HMRC regulations. Whether you’re a first-time landlord or have years of experience, staying informed about tax-deductible expenses and recent tax rule changes can help you avoid unexpected costs and maximise your returns.
Did You Know You Could Deduct That?
There are several allowable expenses that landlords can deduct from their rental income before calculating their tax liability. These include:
- Letting agent’s fees
- Accountant’s fees
- General maintenance and repairs (but not improvements)
- Ground rents and service charges
- Landlord insurance (including policies for appliance coverage like British Gas HomeCare)
- Services such as cleaners and gardeners
- Professional services like between-tenancy inventories and deep cleans
- Compliance checks such as Gas Safety Inspections (GSIs), Electrical Installation Condition Reports (EICRs), and Energy Performance Certificates (EPCs)
- Utility costs (if the landlord covers water rates, council tax, gas, or electricity)
- Legal fees for lets of a year or less, or for renewing a lease of less than 50 years
- Advertising and administrative costs (phone calls, stationery, and marketing for new tenants)
Taking advantage of these deductions can significantly reduce your taxable rental income, ensuring you only pay tax on your true profits.
But Remember…
While many expenses are tax-deductible, there are key changes landlords need to be aware of:
- Mortgage Interest Relief – Landlords can no longer deduct mortgage interest payments from rental income. Instead, they receive a tax credit worth 20% of their mortgage interest costs.
- Apportioning Expenses – If you rent out only part of your property or let it out for only part of the year, you must proportion your expenses accordingly.
Expert Advice for Landlords
Cindy Petts, Head of Property Management shares her insights:
“Understanding your tax obligations as a landlord is vital for maximising your rental income and staying compliant with HMRC. Many landlords don’t realise just how many expenses are deductible. At Swindon Home Finders, we work closely with our landlords to ensure they are well-informed and taking full advantage of tax reliefs where possible.”
Stay Ahead with Swindon Home Finders
Managing a rental property is more than just collecting rent—it’s about making smart financial decisions to protect your investment. If you’re a landlord looking for expert advice and hassle-free property management, Swindon Home Finders is here to help. Get in touch with our team today to ensure you’re making the most of your rental income while staying fully compliant with the latest regulations.
