What Landlords Must Track for Rental Income Accounting in the UK (Infographic)

May 22, 2025

Managing rental properties is more than just collecting rent. If you are a UK landlord, keeping your rental income accounts in order is essential not only for maximising profits but also for staying compliant with HMRC regulations. From tracking income to claiming allowable expenses, understanding what records to keep can make a big difference especially when it’s time to file your tax return.

That is why we have created a simple, easy-to-follow Infographic that outlines what landlords must track for effective property accounting.

🏡 1. Track Your Rental Income

All income from your property must be declared. This includes:

Monthly rent received
Late payments or arrears
Refundable deposits
Service charges and additional tenant payments

Recording these properly ensures accurate Self Assessment tax return filing and helps avoid underreporting.

💸 2. Understand Allowable vs Non-Allowable Expenses

Reducing your tax bill starts with knowing what you can deduct:

✅ Allowable Expenses: letting agent fees, repairs, insurance, mortgage interest
❌ Non-Allowable Expenses: property improvements, personal use costs

Only revenue expenses are deductible from rental income—not capital expenditure.

🏗️ 3. Keep Capital Improvements Separate

Upgrades like new kitchens, extensions, or leasehold enhancements fall under capital expenditure. While not deductible annually, they can reduce your Capital Gains Tax bill when the property is sold.

🗂️ 4. Organise Important Documents

Well-maintained records help in case of audits and ensure full deductions:

Receipts & invoices
Tenancy agreements
Mortgage statements
Inventory records
HMRC correspondence

Digital backups are a smart move, especially with Making Tax Digital (MTD) rules.

📅 5. Don’t Miss Tax Return Filing Deadlines

Key dates for UK landlords:

Self Assessment: 31 January
Capital Gains Tax (CGT) reporting: within 60 days of selling a property

Missing these can result in penalties—something every landlord should avoid.

🧰 6. Use the Right Tools

Consider using:

Landlord accounting software
Spreadsheet trackers
An experienced property accountant for compliance and efficiency

✅ Need Help With Rental income Accounting?

At Doshi Accountants, our team of experienced property accountants supports UK landlords with tailored advice on rental income, capital gains, and Self Assessment tax return filing.

👉 Contact us today to simplify your property accounting and avoid tax pitfalls.

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