When do I need to register for Self Assessment as a landlord?

By 5 October following the end of the tax year in which you first received rental income. For example, if you first let a property in the 2026 to 2027 tax year, you register by 5 October 2027.

Do I pay tax if my rental makes a loss?

No. A rental loss is not taxed, and you can usually carry it forward to reduce the tax on rental profits in later years.

What is the £1,000 property allowance?

Instead of claiming actual expenses you can deduct a flat £1,000 property allowance. It helps landlords with low rents or few costs, but you cannot claim it and your actual expenses at the same time.

Can I claim mileage for visiting my rental?

Yes. You can generally claim simplified mileage at HMRC's approved rate for journeys made wholly for the property business, such as inspections and repairs, provided the records support it.

Landlord expenses and your first tax return: what you can actually claim

Updated July 2026 · Applies to England · 6 minute read

Rental income is taxable, but here is the part new landlords miss: you are taxed on your profit, not your rent. Every allowable cost you forget to claim is tax you pay on money you never really kept. Knowing exactly what counts, and what does not, is the difference between an accurate return and an expensive one.

What you can deduct

The test HMRC applies is that a cost must be incurred "wholly and exclusively" for the rental business. For a typical residential let that covers the day-to-day running costs, including:

Letting-agent and management fees
Repairs and maintenance that keep the property in its existing condition
Landlord insurance
Ground rent and service charges
Council tax and utility bills for any period you pay them, such as void periods
Gas safety and electrical certificates, and other compliance costs
Accountancy fees for the rental accounts
Advertising for new tenants
Mileage for journeys made purely for the property, at HMRC's approved rate

The mortgage interest exception

There is one big cost that does not work like the rest. Mortgage interest is not a normal deduction for individual landlords. Under Section 24 you are taxed on your full rental income and then given a 20% credit for finance costs at the end. It is the single most misunderstood line on a landlord's return, and it is why a higher-rate landlord's bill can look far worse than the profit suggests.

Repairs versus improvements is the line that trips people up most. Replacing a broken boiler with a similar one is a repair, and deductible now. Adding an extension, or fitting a kitchen where there was none, is an improvement, which you cannot claim against rental income. Keep those improvement receipts anyway, because they reduce your gain when you eventually sell and face capital gains tax.

The £1,000 property allowance

If your rents are modest, there is a shortcut. Instead of totting up actual expenses you can claim a flat £1,000 property allowance and pay tax on the rest. It only makes sense when your real costs are below £1,000, and you cannot claim the allowance and your actual expenses together, so compare the two before you choose. For most landlords with a mortgage and agent fees, claiming actual costs wins easily.

Your first Self Assessment

If you started letting a property, the deadline to know is 5 October following the end of the tax year you first received rent. That is when you must register for Self Assessment. Miss it and penalties can follow even if you eventually pay the tax. Once registered, your return and any tax are due by the following 31 January.

Two habits make the whole thing painless: keep every receipt and a simple record of income and costs from day one, and open a separate account so the rental money is not tangled with your own. Those same records are what Making Tax Digital will soon require you to keep digitally, so building the habit now pays off twice.

Records start with a proper set-up

Clean tax records begin at the tenancy itself: a compliant agreement, a rent book and organised paperwork from day one. Our Complete Landlord Pack builds all of it from a few answers, instantly as PDF and Word. £49, one-off.

See the Complete Pack →

Get your first return right

Free guidance and specialists from our sister firm, LOYALS, a UK accountancy practice that files landlord tax returns every day.

Allowable expenses guide Self Assessment service Landlord accountants Book a free call

TenancyTemplates customers get 50% off the first year at LOYALS with code TT50.

Frequently asked questions

When do I register for Self Assessment? By 5 October after the tax year you first received rental income.

Do I pay tax on a loss? No. A rental loss can usually be carried forward against future rental profits.

Can I claim before I have a tenant? Some pre-letting costs qualify, and revenue expenses in the run-up can be treated as incurred on the first day of letting. The rules have limits, so check them.

Can I claim my own time? No. Your own labour is not an allowable cost, though a tradesperson's invoice is.

This guide is general information for landlords in England, not tax or legal advice for your specific circumstances. Check the current rules on GOV.UK or speak to an accountant before acting.