A landlord's guide to property income records

Property income is straightforward to report when the underlying records are in order. Most of the difficulty landlords run into comes from missing paperwork, not from complicated rules.

Records worth keeping for every property

• Rent received, by property and by tenancy, with dates.
• Agent statements, including fees deducted at source.
• Repairs and maintenance invoices, separated from improvement work.
• Mortgage interest statements and any arrangement fees.
• Insurance, ground rent, service charges, safety certificates and licences.
• Purchase, improvement and sale evidence, kept for as long as it may be needed to work out a later capital gain, alongside the usual record-retention rules.

Repairs versus improvements

Repairs that put a property back into its previous condition are generally allowable against rental profit. Work that improves or extends the property is usually capital, relevant when you eventually sell rather than against this year’s income. Keeping the two apart as you go saves a lot of reconstruction later.

Finance costs

For individual landlords of residential property, finance costs such as mortgage interest are not deducted from profits in full; relief is given as a basic rate tax reduction instead. The treatment differs for companies and for some non-residential lettings, so it is worth confirming which rules apply to you.

Digital reporting under MTD for Income Tax

The first mandatory phase of Making Tax Digital for Income Tax began on 6 April 2026. Landlords and sole traders with combined gross self-employment and property income before expenses over £50,000 in 2024–25 should already be using it, unless exempt. Qualifying income over £30,000 in 2025–26 brings MTD in from 6 April 2027; over £20,000 in 2026–27 from 6 April 2028. Exemptions can apply, including possible digital exclusion.

Affected landlords must keep digital records, send quarterly updates and submit their annual tax return through compatible software. Updates do not replace the return, and tax payment dates do not change solely because of MTD. A dedicated bank account, receipts captured monthly and one place for agent statements help keep reporting manageable. See our MTD for Income Tax guide.

Where we can help

We keep property records, prepare your Self Assessment and handle quarterly updates. See support services or get in touch.

This guide is general information, not advice for your specific circumstances. Please check with us before acting.