Property Expenses

Are you claiming your expenses?

Being a landlord is more than just looking after properties and collecting rent. It’s an investment and managing it well is key to staying stress-free and profitable. Luckily, landlords can claim back various property expenses against their income. Knowing which expenses are deductible can help you save a lot on your tax bill.

Here’s a breakdown of some property expenses you can reclaim:

Mortgage interest: As of the 2020-2021 tax year, landlords can no longer deduct any of their mortgage interest payment directly from their rental income. Instead, they receive a tax credit, based on 20% of their mortgage interest payments. It remains essential to record these payments.

Repairs and maintenance: Expenses incurred for maintaining the rental property, such as, painting, plumbing work, or window repairs are tax-deductible.

Insurance: Landlord insurance premiums, including coverage for property damage, liability, and loss of rental income, can be deducted from your tax bill.

Property management fees: If you hire a property manager to handle daily operations, their fees can be deducted.

Professional services: Any fees paid to professionals like accountants, lawyers, or real estate agents are deductible.

Travel expenses: Costs associated with traveling to and from your rental property for management or maintenance are tax-deductible.

Advertising: expenses for advertising the rental property can be deducted.

Council tax and utility bills: If the landlord is responsible for paying council tax and utility bills, these costs are deductible from your rental income.

Cleaning and gardening: The costs of hiring cleaners or gardeners for the rental property are tax-deductible.

Home office expenses: If you use part of your home for managing your rental business, a corresponding portion of home expenses can be deducted.

Pest control: Expenses for pest control services for the rental property are deductible.

Safety compliance: Costs for ensuring the property meets safety standards can be deducted.

Service charges: Service charges on leasehold properties, including ground rent or service charge, are tax-deductible.

Stationery and phone bills: A portion of stationery and phone bills related to the rental business can be deducted.

Cost of eviction: Legal costs incurred during the eviction of a tenant can be deducted.

Landlord software: Expenses for software or online services for managing the properties are deductible.

Educational resources: Books, courses, or seminars related to being a landlord or managing rental properties can be deducted.

Conclusion

Understanding what expenses you can claim as a landlord is a powerful tool in maximising your profits. By keeping informed about deductible expenses, landlords and property investors can achieve lower tax liabilities and higher returns.

How we help

Our property experts understand the unique challenges landlords and property investors face. We manage all your accounting needs, allowing you to focus on running and growing your business. Our services are affordable and fixed in price, ensuring peace of mind and financial predictability.

We offer a simple, user-friendly system designed for landlords of all portfolio sizes. Our comprehensive support will guide you through the complexities of property tax, saving you both time and money.

Benefits of our service

• Advice on ideal business structure
• Affordable Fixed Fees with no hidden costs
• On hand expert assistance
• Time-Saving Solutions
• Calculating all allowable deductibles to reduce your tax burden
• Strategies to profit from your business and enhance tax efficiency
• Handling all administrative tasks, including paperwork and bookkeeping
• Acting as your point of contact with tax authorities
• Ensuring accurate and timely submission of tax returns and documentation to HMRC