Being a landlord doesn’t have to feel like a tax maze. At Coconut, we know your time matters and that your tax claims should be as smooth as a coconut breeze. This quick guide explains what expenses you can claim on your rental property, what you can’t, and how Coconut makes it stress-free.
What can landlords claim as expenses?
When you let out a property, you can claim certain costs against your rental income to reduce your tax bill. These are called allowable expenses. Here’s what counts:
1. Repairs and maintenance (not improvements)
Keeping your property in good shape? Claim for:
- Fixing leaks, broken windows, boilers
- Painting and decorating
- Regular servicing
However, big upgrades like a new kitchen or an extension are classed as capital improvements. You can’t deduct them now, but they’ll help with Capital Gains Tax later.
2. Mortgage interest (limited relief)
You can’t deduct the full mortgage interest anymore. Instead, you get a 20% tax credit on mortgage interest paid. This only applies to residential buy-to-let properties.
3. Professional and management fees
Paying an agent to find tenants or manage your property? Using an accountant to sort your tax return? These are all claimable. Legal fees for short leases and tenancy agreements count, too.
4. Insurance, utilities and council tax
- Insurance: building, contents, landlord and rent protection insurance are all deductible
- Utilities and Council Tax: if you pay them (not your tenant), you can claim them back
- Ground rent and service charges: leasehold costs like these are also allowable
5. Advertising and tenant-finding costs
Marketing your property through online ads, listings and photography are all expenses you can claim.
6. Travel and transport
Need to visit the property for inspections or repairs? Mileage, petrol and public transport are all deductible. Just keep track of dates and the reasons for travel.
7. Replacing domestic items
Replacing old furniture or white goods in a furnished property? You can claim for the cost of replacement, not upgrades.
What can’t you claim?
Some things aren’t classed as allowable expenses:
- Capital improvements such as new bathrooms or extensions
- Personal costs like clothes, gym memberships or home-to-office travel
- Fines or penalties including parking tickets and late fees
Why keeping records matters
Your claims only work if you can prove them. HMRC expects clear records through receipts, invoices and notes on why you spent the money. That’s where Coconut makes life easy:
- Snap receipts and log them instantly
- Categorise expenses automatically
- Export everything for your Self Assessment
Let Coconut do the heavy lifting
Tax rules change. Deadlines loom. And nobody likes a last-minute scramble. With Coconut, you stay ahead without breaking a sweat:
- Simple tools to track income and expenses
- HMRC-ready reports in a few taps
- Friendly support when you need help
Ready to make tax effortless? Sign up today and see how easy it feels when Coconut’s on your side.
