Allowable expenses for landlords (HMRC)

This page is general information, not tax advice. HMRC publishes detailed rules for property income; use that or an accountant for your own position. What follows is the vocabulary most landlords need when logging expenses for MTD quarterly updates.

Repairs and maintenance vs improvements

A common tripwire: repairing something that already exists (fixing a roof leak, replacing a broken boiler like-for-like) is usually treated differently from improving the property (adding an extension, upgrading to a luxury kitchen). Improvements often affect capital gains later rather than looking like a day-to-day expense — get this wrong and your MTD log won't match your year-end position.

Categories landlords actually use

• Letting agent and management fees — often straightforward if tied to rent collection.
• Insurance — landlord policies; keep policy documents.
• Service charges and ground rent — where applicable for leaseholds.
• Cleaning and gardening — between tenancies or as part of letting, where wholly and exclusively for the rental.
• Finance costs — mortgage interest has specific rules; don't assume 100% of a payment is an allowable expense without checking.

Why plain-English categories matter for MTD

Quarterly updates need a clean trail from bank statements and receipts to categories HMRC recognises. Software that hides behind jargon makes you more likely to mis-tag — then you fix it at year-end under pressure. LandlordSorted uses landlord-friendly labels so your log matches how you think about the property.

Related: How to submit a quarterly update · MTD for landlords explained