Are you Claiming all your Expenses?

To ensure you are paying as little tax as possible it’s important to claim all the allowable expenses that are available. Are you claiming all of yours?

As a general rule, landlords can claim the expenses of running and maintaining their property. The most common types of expenses you can deduct are:

  • Water rates, council tax, gas and electricity
  • Contents insurance
  • Costs of services, including the wages of gardeners and cleaners (as part of the rental agreement)
  • Letting agents' fees
  • Legal fees for lets of a year or less, or for renewing a lease of fewer than 50 years
  • Accountant’s fees
  • Rents, ground rents and service charges
  • Direct costs such as phone calls, stationery and advertising for new tenants

Big HouseIf the rent you charge covers services like water or council tax, you'll need to include the amount you charge the tenant for these services within your rental income. However, you can then claim the costs you pay for those services as an expense against the rental income.

When claiming expenses you should always bear in mind that the expense should be incurred wholly and exclusively as a result of renting out your property. Where only part of the expense meets this condition, you will need to appropriately apportion that cost and deduct only the rent-related element from your income. For example, the cost of lighting and heating a property which is partly used for private purposes as well as renting would need apportioning to determine the amount to claim against rent.