What Can Landlords (Single Property) Claim as Expenses?

No, not directly. Since April 2020, individual landlords (not companies) cannot deduct mortgage interest from rental income. Instead, you receive a 20% tax credit on the interest paid. This is entered separately on your Self Assessment return. Basic-rate taxpayers are unaffected, but higher-rate (40%) taxpayers pay significantly more than before Section 24. For example, on £6,000 mortgage interest, a 40% taxpayer previously saved £2,400 in tax but now only saves £1,200 via the credit — an extra £1,200 tax per year.

Yes. You must declare all rental income to HMRC through Self Assessment, even if your expenses exceed your income and you make a property loss. Reporting a loss is important because you can carry the loss forward to offset against future rental profits from the same property business. If you do not declare it, you lose the ability to use that loss.

You can claim for replacing furniture and domestic items under the Replacement of Domestic Items Relief — but only for replacements, not the initial furnishing. When you replace a sofa, fridge, or carpet, you can deduct the cost of a like-for-like replacement. If the replacement is a higher specification, you can only claim the cost of the nearest equivalent to the old item. The cost of initially furnishing the property when you first let it is capital expenditure and cannot be claimed against rental income.

The Rent a Room Scheme lets you earn up to £7,500 per year tax-free by renting out a furnished room in your main home. It does not apply to a separate buy-to-let property — only to a room within the home you live in. If you rent a room in your home to a lodger, you do not need to declare the income if it is under £7,500. If it exceeds £7,500, you can choose to either pay tax on the excess (with no expense deductions) or opt out and use the normal rental income rules instead.

For existing landlords, transferring a property to a company triggers Capital Gains Tax and Stamp Duty Land Tax — so the upfront costs can be substantial. Incorporation is most beneficial for higher-rate taxpayers with large mortgages (because companies can still deduct mortgage interest in full) and for landlords building a portfolio. For a single property with modest mortgage interest, the costs of incorporation (annual accounts, corporation tax return, confirmation statement) usually outweigh the Section 24 tax saving. Get specific advice from a property tax accountant before deciding.

No. You cannot claim for the value of your own labour. If you personally fix a leaking tap, you can claim for the materials (washer, sealant) but not for your time. Only payments to third-party tradespeople for their labour are deductible. This applies equally to DIY property maintenance, cleaning, and gardening that you do yourself.