Self Assessment for Landlords: Rental Income Guide

If you earn rental income from property, you need to report it through Self Assessment. Here is how to handle property income on your tax return.

Reporting Rental Income

Your total rental income goes on the property pages of your Self Assessment return. Report the gross rent received — the full amount before deducting any expenses.

If you use a letting agent who deducts their fee before paying you, still report the gross rent and claim the agent's fee as an expense.

Allowable Property Expenses

• Letting agent and management fees
• Insurance (building and landlord liability)
• Repairs and maintenance (not improvements)
• Ground rent and service charges
• Council tax (if paid by you)
• Utility bills (if included in rent)
• Legal fees for lets of a year or less
• Accountancy fees
• Travel to properties for inspections or maintenance
• Advertising for tenants
• Replacement of domestic items (furnished lets)

Mortgage Interest Restriction

Since 2020/21, individual landlords cannot deduct mortgage interest as an expense. Instead, you receive a 20% tax credit on mortgage interest payments.

This means:

• You report your profit before deducting mortgage interest
• HMRC calculates your tax on that higher profit
• Then applies a 20% credit on the mortgage interest

Higher-rate taxpayers are most affected — previously getting 40% relief on mortgage interest, now only receiving 20%.

Repairs vs Improvements

Repairs (deductible): Fixing a leaking roof, repainting walls, replacing a broken boiler with a similar one.

Improvements (not deductible): Adding an extension, upgrading a kitchen beyond its original standard, installing central heating where there was none.

Multiple Properties

All UK rental properties form a single property business. Report the combined income and expenses on your Self Assessment return. Accounted tracks each property separately while consolidating for your return.

MTD is coming. Accounted is already compliant. Start free and be ready before the deadline.