To maximise your profits as a landlord, it's crucial to minimise your tax liability by claiming all allowable expenses.

As a general rule, for self-employed income tax deductions, you can claim any costs incurred solely for running your rental business and generating income as a landlord. These include costs related to the day-to-day management, letting, and maintenance of your property.

Here’s a summary of what can be claimed:

• General business expenses

Mileage for trips to and from the property.

• Phone calls to tenants and agents

• Office costs, including working from home

• Advertising to attract tenants

• Insurance

This covers your rental property’s buildings and contents insurance, as well as rent guarantee insurance.

• Maintenance services

Such as gardening and cleaning services.

• Repairs and replacements for furnishings

You can claim revenue expenses like repairs to kitchens and bathrooms or replacing worn-out furniture. However, if you're upgrading parts of the property, those are considered capital expenses and can be claimed against capital gains when you sell the property.

• Ground rent and service charges (leasehold properties)

• Council tax and utility bills while vacant

If the property is temporarily unoccupied, some councils allow you to claim council tax and utility costs during the vacancy.

• Professional fees

This includes fees for your property tax accountant or bookkeeper, and letting/management fees charged by agents. Fees related to buying or selling the property, such as surveyor and solicitor fees, can only be deducted from your capital gains liability when you sell the property.

Since property tax can be complex, it’s advisable to consult a specialist. Even if you have an accountant or financial adviser, they might not be experts in property tax. Seeking advice from someone who works with landlords regularly can help clear up confusion. At Leaders, we have an in-house tax service available to help landlords manage these concerns.

Want to ask an experienced letting agent a question about claiming expenses? Feel free to contact your local Leaders branch who will be happy to advise.