What are the HMRC 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.
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.
Other property income
Other income for services provided to tenants.
Examples: maintenance charges, communal area charges
Tax taken off rental income
Other tax taken off rental income.
Examples:
Non-business income
Money you receive that isn't related to your business.
Examples: gifts, personal income, refunds unrelated to your business.
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
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