Whether you let one flat or a small portfolio, rental income has to be reported to HMRC through Self Assessment. The rules on what you can claim, how finance costs are treated and how jointly owned property is split catch a lot of landlords out, and the penalties for getting it wrong add up quickly.
We prepare your return, check your income and costs, show you the tax due before anything is filed and keep you ahead of the deadlines.
What we do for landlords
- Prepare and file your Self Assessment tax return, including rental income alongside any other income
- Work out your rental profit and claim every allowable expense
- Apply the 20% tax credit on mortgage interest and other finance costs
- Split income and costs correctly for jointly owned property
- Get you ready for Making Tax Digital for Income Tax and handle the quarterly updates
Allowable expenses for landlords
You can usually deduct the running costs of the let from your rental income. Common examples include:
- Letting agent and management fees
- Repairs and maintenance (not improvements)
- Landlord insurance
- Ground rent and service charges
- Utility bills and council tax you pay for the property
- Accountancy fees and legal fees for lets of a year or less
- Replacing furnishings such as beds, sofas and white goods
Improvements that add value, such as an extension, are not a running cost. They may matter when you sell the property instead.
Mortgage interest and finance costs
For residential property held in your own name, mortgage interest is no longer deducted as an expense. You get a tax credit at the 20% basic rate on your finance costs instead. Basic rate taxpayers often see little change, but higher rate landlords can pay noticeably more tax, so it pays to have the calculation done properly.
Making Tax Digital for landlords
Making Tax Digital for Income Tax started on 6 April 2026 for landlords and sole traders whose qualifying income is over £50,000. It extends to qualifying income over £30,000 from April 2027 and over £20,000 from April 2028. If it applies to you, you will need compatible software and quarterly updates to HMRC as well as your annual return. Read our Making Tax Digital guide or try the MTD checker.
Jointly owned property
If you own a property with someone else, each of you reports your own share of the profit. For married couples and civil partners the default is usually an equal split, even where the ownership is different, unless the right steps have been taken. We will check how your property is held and make sure both returns match.
Landlord tax FAQs
How much does a landlord tax return cost?
A landlord Self Assessment tax return is our standard fixed fee of £298 a year, covering your rental income alongside any other income. Anything beyond the tax return, such as bookkeeping for a larger portfolio, is quoted on request before we start.
Does Making Tax Digital apply to me as a landlord?
Making Tax Digital for Income Tax applies from 6 April 2026 if your qualifying income from property and self employment is over £50,000. The threshold falls to over £30,000 from April 2027 and over £20,000 from April 2028. If it applies, you keep digital records and send quarterly updates to HMRC as well as filing your return.
Can I claim my mortgage interest?
Not as an expense for a residential let held in your own name. Instead you get a tax credit at the 20% basic rate on your finance costs. It makes a real difference for higher rate taxpayers, so we work it through properly on your return.
We own the property jointly. Who pays the tax?
Each owner reports their own share of the profit on their own tax return. For married couples and civil partners the default is usually a 50:50 split, and a different split may be possible where the ownership shares are genuinely unequal. We will check what applies to you.
Do I need a tax return if I only rent out one property?
Usually, yes, if you make a profit from renting. Very small amounts of property income can be covered by the property allowance, so it is worth asking us before you assume either way.
Landlord accountants across Blackpool and the Fylde Coast
We look after landlords with lets in Blackpool, Lytham St Annes, Poulton, Fleetwood and beyond. Find your own town below.
Other ways we can help
Let's sort your books out
Drop us an email or give Dan a ring. There's no obligation and no pressure. Whether you're ready to switch or just weighing up your options, we'll send a clear written quote, usually the same day.