Self-assessment for landlords: what counts as an allowable expense?

Get the expense list right and you'll keep more of your rental income legally. Here's a working list that holds for the typical UK landlord (always confirm specifics with an accountant).

Definitely allowable

• Letting agent fees.
• Accountant fees (the part that relates to your property income).
• Insurance (buildings, contents, landlord, rent guarantee).
• Maintenance and repairs (replacing a broken boiler with a like-for-like new boiler counts; an upgrade does not).
• Utility bills you pay (during voids, or if your AST includes bills).
• Council tax during void periods (no tenant to charge it to).
• Service charges and ground rent.
• Legal fees for short-term contracts (under 1 year) and renewals; longer-term legal fees go on capital account.
• Marketing and advertising costs.
• Mileage at HMRC's flat rate (currently 45p / mile for the first 10,000 miles) for property visits.

Watch out: improvements vs repairs

A repair restores the property to its previous condition (allowable). An improvement makes it better (capital, deductible only against CGT when you sell).

Replacing single-glazed with double-glazed windows is now usually treated as a repair (HMRC's view since 2016) because double glazing is the modern equivalent. Adding an extension is always capital.

The £1,000 property allowance

If your gross rental income is under £1,000 you don't need to declare it. If it's over, you can either:

• Claim actual expenses, or
• Claim the £1,000 allowance instead (no other expenses).

For most landlords, claiming actual expenses wins.

Track in havelo

The maintenance log (/dashboard/maintenance) records every repair with cost, photo evidence and the receipt URL. Compliance certificates carry their cost too. At year end, export and hand to your accountant.

This is not tax advice. Speak to an accountant before relying on any of this.