Home / Glossary / Consolidated expenses
What is Consolidated expenses?
Last verified 31 October 2026
Consolidated expenses means reporting your property costs as one overall figure instead of splitting them across every expense category. In HMRC's guidance this appears as simpler categorisation, available if your total UK property turnover is less than £90,000.
Why it matters to landlords
For a small landlord the choice saves effort: with simpler categorisation you do not need to sort each cost into a separate expense category before sending a quarterly update. The turnover test is on total UK property turnover, which is rent received, not profit.
Some things do not change. HMRC says residential landlords must still record whether an expense is a restricted finance cost, such as mortgage interest, because that cost is relieved at the basic rate rather than deducted. You should also keep your normal Self Assessment records, including original documents or copies. If you are unsure which route you will use, HMRC says to record all expenses by category.
Example
Sam collects £48,000 of rent from four houses, so he is under £90,000. His update shows one total of £11,200 for ordinary running costs, plus mortgage interest of £6,000 recorded separately as a restricted finance cost.
Allowable Expenses for Landlords (2026) →
Related terms
- Allowable expenses
- Finance cost restriction
- Quarterly update categories
- Cumulative updates
- UK property business