What are the HMRC Detailed tax categories for landlord transactions?
There are a number of different categories used by HMRC when you file your taxes to help you separate and organise your business finances.
Please be aware that Monzo cannot provide any advice on how to categorise your individual finances, as we are not regulated to provide tax advice. If you are not sure which category to use, please consider contacting HMRC, researching the categories online, or getting professional tax advice.
If you are looking for the tax categories for other sole traders that are not landlords, please use this article
Here is a list of the tax categories available to landlords with Monzo and some examples:
Income Categories:
Rental income
Money you earn from your property/properties (not including ground rents, rent charges and rent-a-room rental income)
Example: rental payments from tenants.
Non-business income
Money you receive that isn't related to your business.
Examples: gifts, personal income, refunds unrelated to your business.
Other property income
Other income for services provided to tenants.
Examples: maintenance charges, communal area charges
Rent a Room scheme income
Money you earn from your property/properties under the Rent a Room scheme
Examples: rental payments from tenants under the Rent a Room scheme.
Tax taken off rental income
Other tax taken off rental income.
Examples:
This is a refund I have received
A refund that your business has received. Please select the category that matches the expense transaction for the refund.
Examples: Refund for returned supplies or a cancelled service
Expense Categories:
Amount of relief brought forward
Amount of residential financial costs carried forward.
Examples:
Bank fees
Loan interest and other financial costs.
Examples: interest from loan, bank fees.
Car, van and travel costs
Travel or vehicle costs for running your property business.
Examples: fuel for business journeys, train fares, mileage claims.
Professional fees
Legal, management and other professional fees.
Examples: legal costs, property management fees.
Rents, utilities and insurance
Rent, rates, insurance, ground rents and other costs.
Examples: rental insurance, ground rent, other rental costs
Rent a Room relief claimed
Deductions due to relief claimed under the Rent a Room scheme.
Examples: Rent a Room relief deductions.
Repairs and maintenance
Fixing or maintaining property/properties, or tool costs used to maintain the property.
Examples: repairing property, maintaining tools.
Service fees
Cost of services provided to the property/properties, including wages.
Examples: wages, pensions, staff benefits.
Tax relief from residential cost
The residential financial cost deductible from rental income (tax relief).
Examples:
Other Categories:
Lease premiums received
Premiums received for the grant of a lease and other lump sums to possess a property.
Examples: lease premiums
Reverse premiums and inducements
Amount paid by a landlord or outgoing tenant to induce a new tenant to enter into a leasehold agreement.
Examples: inducement payments, final additional payments from tenants
Transfers
Money moving between your business accounts. If you choose this category, it will automatically create a corresponding manual transaction as a Transfer to balance the report to HMRC.
Example: Cash deposited into your Monzo account, payment from an external business account to your Monzo account.
Not relevant to my business
Money you receive that isn't related to your business.
Examples: gifts, income for another business, refunds received unrelated to your business.
Was this article helpful?
Related articles
- What is Making Tax Digital?
- What is the Making Tax Digital space in the app/web?
- How can Monzo help my business prepare for Making Tax Digital?
- Helpful links for Making Tax Digital
- I’m not able to use digital tools for Making Tax Digital, what can I do next?
- How does Making Tax Digital for Income Tax affect me if I have multiple Sole trader businesses/properties?
- Making Tax Digital for Income Tax eligibility questions support
- What is cash basis accounting and accruals accounting?
- What are the HMRC Detailed tax categories for sole trader transactions?
- How does split ownership for landlords work with Making Tax Digital?
- Can I swap to a different Making Tax Digital tool halfway through my tax year?
- How do I onboard to Monzo’s Making Tax Digital submission tool?
- How do I sign up to Making Tax Digital for Income Tax with HMRC?
- How do I add a tax category to my transaction for the Making Tax Digital submission tool?
- How do I split a transaction in Monzo’s Making Tax Digital submission tool?
- How do I log information on money outside Monzo for my business for Making Tax Digital for Income Tax?
- How to submit a quarterly update on the Monzo Making Tax Digital submission tool?
- How do I see my live tax bill estimate in Monzo’s Making Tax Digital tool?
- How do I leave the Monzo Making Tax Digital submission tool?
- What are Simpler and Detailed categories for Making Tax Digital for Income Tax?
- How do I add my accountant to Monzo's Making Tax Digital for Income Tax tool?
- How do I log funds from outside of my Monzo business account that then get moved to/from my Monzo business account?
- What are the HMRC Simpler tax categories for sole trader transactions?
- What are the HMRC Simpler tax categories for landlord transactions?
- How do I change between Simpler and Detailed tax categories for Making Tax Digital for Income Tax?
