MTD does not change which landlord costs you can claim. It changes when you sort them: each cost goes into a category as you go, and the running totals are sent four times a year. With the 7 November 2026 update due (what it contains), this is where each common cost goes.
Not sure whether a cost counts at all? Start with our allowable expenses checklist. This page is only about categories.
The categories
MTD uses the same income and expense categories as the property pages of Self Assessment, and each digital record needs a date, an amount and a category (GOV.UK).
| Cost | Category in your update |
|---|---|
| Repairs, like-for-like replacements, redecorating between tenants | Repairs and maintenance |
| Letting agent, management and accountant's fees | Professional or agent fees |
| Landlord buildings, contents and liability insurance | Insurance |
| Ground rent, service charges, council tax and utilities you pay | Rent, rates, insurance, ground rents |
| Gardeners and cleaners | Costs of services provided |
| Advertising for tenants, phone calls, stationery | Other allowable property expenses |
| Mortgage interest and loan arrangement fees | Residential finance costs |
| Replacing furniture or appliances like for like | Replacement of domestic items (check your software's label) |
| Mortgage capital repayments | Not recorded |
| Extensions, upgrades, first-time furnishing | Not in the update (capital; keep receipts for CGT) |
Category names vary a little between products, so match them to whatever your software shows.
Two lines to get right
Finance costs stay separate. Record the interest, not the whole mortgage payment, in residential finance costs. Even under simpler categorisation (property turnover under £90,000) you must flag restricted finance costs. Why it matters: Section 24 and MTD.
Capital stays out. A repair puts something back as it was; a new conservatory or extension is capital and does not go in the update.
A worked example
Costs for 6 July to 5 October:
- £1,850 to replace a failed combi boiler with a similar model
- £4,200 to add a downstairs WC that did not exist
- £1,320 of mortgage payments, of which £980 is interest
- £135 for a tenant-find advert
In the records: repairs £1,850, residential finance costs £980, other expenses £135. The WC (£4,200) and the £340 of capital repayment stay out. Recording all £7,505 would overstate costs by £4,540 in the running totals HMRC sees.
Where Padlord fits
Padlord is not filing software. We built it so costs sit against the right property and category as they happen, so the quarterly totals are easy to check before you send them from your MTD software. Try it free at www.padlord.co.uk.
General information, not tax or financial advice. Checked against GOV.UK on 13 October 2026.
