Landlord Tax Tips: Expenses Many DIY Landlords Forget to Claim

When you are managing a rental property or more than one, it means keeping on top of more than just the rent payments or the maintenance repairs. With Making Tax Digital now in place, and the Renters' Rights Act increasing the risk of penalties for poor compliance and record keeping, landlords need to be far more organised than they ever used to be.

So if you are looking to become a landlord, or are currently tightening your paperwork, don’t forget that you can legitimately claim a range of costs against your rental income. Our experience shows that an awful lot of DIY landlords either forget to claim these expenses, they lose the paperwork, or simply don’t realise what can be claimed.

It is important to stress that this is not tax advice - we know that every landlord’s situation is different, and you should always check with your accountant or tax adviser - but understanding the basics can help you stay organised and avoid missing common expenses.

You can also read our guide to what landlords need to do under the Renters' Rights Act.

Repairs vs Improvements: The Difference Matters

This is one of the areas which landlords misunderstand most often. Generally speaking, repairs and maintenance linked to keeping the property in good working order can usually be claimed as allowable expenses. That might include:

• Repairing a boiler
• Fixing a leak
• Replacing broken roof tiles
• Repainting walls between tenants
• Repairing damaged electrics
• Replacing worn carpets [like for like]

However, improvements are treated differently.

Eg, replacing an old kitchen with a similar standard kitchen may count as a repair. Installing a much higher-spec kitchen that significantly upgrades the property is more likely to be treated as an improvement. Or upgrading cheap carpet to luxury hardwood flooring throughout is more likely to be viewed as an improvement.

Repairs are usually claimed against rental income, while improvements are often treated separately for tax purposes, and HMRC treats those two situations very differently.

Safety and Compliance Costs Often Add Up

Most landlords know they need certificates and safety checks, but many forget these costs may also form part of their rental business expenses. Costs like Gas Safety Records, EICRs, EPCs and alarm checks are all part of legally running a rental property and can quickly add up.

These records are not just important for tax purposes either. Keeping clear documentation can also help protect landlords if there is ever a dispute, complaint or compliance issue later on down the line.

For a wider overview, see our landlord compliance guide.

Pre-Tenancy Costs Landlords Often Miss

If you are setting up a property before tenants move in, there are several early-stage costs that are easy to overlook.

Depending on your circumstances, landlords may be able to claim things such as:

• Cleaning before move-in
• Property advertising
• Photography and listings
• Tenant referencing
• Insurance
• Initial repairs and maintenance
• Safety certificates

For newer landlords especially, these setup costs can add up quickly, so it is worth keeping invoices and receipts from day one.

Void Period Costs Can Still Matter

Even when a property is empty, some ongoing costs may still be connected to the rental business.

For example:

• Council tax during a void period
• Utility bills
• Water rates
• Service charges or ground rent

If you are covering these costs while preparing the property for tenants or between tenancies, keep records and check with your accountant what may be allowable.

Furniture and Appliance Replacements

Many landlords also forget about replacement items. If you replace existing furnishings or appliances in a rental property, you may be able to claim relief on items such as:

• Sofas
• Beds and mattresses
• Carpets and flooring
• Washing machines
• Fridges and cookers
• Curtains and blinds

Replacing a worn-out sofa is very different from furnishing a property from scratch.

Advertising and Tenant-Find Costs

Finding tenants comes with costs too, particularly for self-managing landlords. Potentially claimable expenses may include:

• Property portal listings
• Photography
• Tenant referencing
• Inventory services
• Tenancy agreement preparation
• Tenant referencing and tenancy setup costs
• Letting and management fees
• Accountancy fees linked to the rental business
• Buildings and landlord insurance policies
• Rent guarantee policies
• Advertising and marketing costs
• Mileage or travel costs linked directly to inspections, maintenance visits or property management
• Council tax and utilities during void periods
• Landlords who manage properties themselves from home may also be able to claim a proportion of certain office-related costs, such as phone use, stationery or software, depending on how the space is used.

As always, the main point to remember is that the cost needs to relate directly to running and managing the rental property. Again, we cannot stress enough the importance of keeping good records for everything related to your rental property or properties. Trying to remember what you paid for months later can quickly become difficult. Plenty of landlords are now using apps that let you photograph receipts and upload invoices straight from your phone. It is a lot easier than trying to rebuild a year’s worth of paperwork when your tax return is due!

You can also compare letting agent fees and services before deciding how much support you need.

Renovating a Buy-to-Let Before Tenants Move In

Landlords preparing a property before the first tenancy often forget that some pre-letting expenses may still be allowable for tax purposes. This can include things like:

• Cleaning
• Safety certificates
• Advertising
• Repairs
• Insurance
• Certain maintenance works

The key point is that the costs generally need to relate directly to preparing the property for letting, rather than significantly improving or redeveloping it. If you are renovating a buy-to-let property before tenants move in, it is especially important to keep invoices, receipts and records from the very beginning of the work.

What Landlords Cannot Claim

Not every property-related expense is automatically allowable. Landlords CANNOT usually claim:

• The capital repayment part of their mortgage
• Personal expenses
• Their own time managing the property
• Major property improvements as day-to-day expenses

Mortgage interest rules have also changed significantly over recent years, and many landlords are still unaware that tax relief no longer works the way it once did. This can have a much bigger impact on higher-rate taxpayers, which is why many landlords now speak to accountants before refinancing, expanding a portfolio or changing their ownership structures.

If you are buying, refinancing or restructuring a property portfolio, it is always worth speaking to an accountant before making decisions.

Why Record Keeping Matters More Than Ever

With Making Tax Digital continuing to roll out, landlords are increasingly expected to keep organised digital records throughout the year - not just scramble around for paperwork every January. A lot of landlords now use:

• Xero
• QuickBooks
• FreeAgent
• Hammock
• even simple receipt-scanning apps

…where you can:

• photograph receipts
• upload invoices
• auto-categorise expenses
• link your bank accounts for open banking
• store everything digitally

Simple habits can make a huge difference:

• Keep invoices and receipts or immediately upload to your software
• Store certificates digitally
• Use separate folders for each property
• Track expenses as they happen
• Keep written notes about larger works or repairs
• Try to avoid verbal arrangements, WhatsApps or Text Messages - emails can be saved

The landlords who stay organised throughout the year usually find tax returns far less stressful and probably payments a lot less expensive.

Final Thought

Owning a rental property is not something that landlords can treat casually, it helps to think of it as a business, even if it is only part-time. Between compliance changes, evolving tax rules and increased reporting requirements, being organised matters more than ever.

That does not mean you need to become a tax expert overnight. But understanding the types of expenses that landlords commonly miss - and keeping proper records from the start (yes, we’ve said it again!) - can help you stay compliant and avoid unnecessary costs (or fines) later on.

Useful Links

• Making Tax Digital for landlords
• What landlords need to know about the Renters' Rights Act
• Landlord compliance guide
• Tenant referencing for landlords
• Costly mistakes landlords are making
• Property management services
• Letting agent fees and services
• More landlord guides