Landlord record-keeping checklist for Making Tax Digital

Making Tax Digital for Income Tax applies to landlords as well as sole traders, using the same income thresholds: qualifying income above £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028. Your property income and any self-employment income are added together. This checklist covers the records to keep. It is general information, so check GOV.UK and ask an accountant about your own case.

1. Record each property separately

Keep income and costs by property, even if you report them together. It helps you see which ones earn their keep, and makes questions from HMRC easier to answer. In AvrioBooks you can use a segment for each property.

2. Record all rent received

• Date, amount, tenant and property.
• Rent paid in advance or in arrears at the start and end of the year.
• Rent that is overdue, so you can chase it.

Deposits held for a tenant are not normally income, so keep them separate.

3. Record allowable expenses

• Letting agent and management fees.
• Landlord insurance.
• Repairs and maintenance.
• Ground rent and service charges.
• Utilities and council tax paid by you, while the property is empty.
• Accountancy and legal fees for routine matters.
• Cleaning, gardening and safety checks.

4. Repairs versus improvements

Repairing something to its previous state is usually an expense. Improving it, for example adding an extension, is normally a capital cost and is treated differently. Keep invoices that describe the work, and ask your accountant when you are unsure.

5. Mortgage interest and finance costs

For residential lettings, mortgage interest is generally not deducted as an expense but is relieved in a different way. Record the interest separately and ask your accountant how it applies.

6. The property allowance

There is a £1,000 property allowance that can be used instead of deducting real expenses if your gross property income is small. You cannot claim both. Check GOV.UK for the current rules.

7. Keep supporting documents

• Tenancy agreements and inventories.
• Receipts and invoices for every cost.
• Gas, electrical and other safety certificates.
• Bank statements for the account you use for rent.

Keep records for at least five years after the 31 January filing deadline for that tax year. See receipt management.

8. Use a separate bank account

A dedicated account for property income and costs makes reconciliation far easier. See why a separate account matters.

9. Joint ownership

If you own a property with someone else, you generally report your share. Record the split clearly.

10. Prepare for quarterly updates

Each quarter you send a summary of income and expenses. A monthly routine of recording rent, costs and reconciling the bank means the update is a short job. See the quarterly update walkthrough and the deadlines.

How AvrioBooks helps

Invoice tenants, record costs, use segments for each property, import your bank statement and send Making Tax Digital updates on the Standard plan and above. See accounting software for landlords.

Frequently asked questions

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