Short answer
Landlords need a receipt tracker that files every cost against the property it belongs to and keeps repairs separate from improvements, because both HMRC and the IRS treat those differently. NexaLink Scanner does this with one project per property and categories for repairs and capital work on Pro, with a free CSV export for your accountant.
Key takeaways
- One project per property: costs, totals and later sale calculations are all per property.
- A repair restores; an improvement betters, enlarges or adapts. HMRC and the IRS both treat improvements as capital.
- Keep improvement receipts for as long as you own the property and beyond — they matter when you sell.
- MTD for Income Tax covers property income too; rental and self-employment income are added together for the threshold.
One project per property
Even with two properties, landlords quickly lose track of which boiler service, which locksmith and which carpet belong where. In NexaLink Scanner (Pro), create a project per property — "Flat 2, 18 Mill St" — and choose it every time. Add a "Portfolio" project for costs that cover all properties, such as landlord association membership or accountancy fees.
| Category | Examples | Why separate |
|---|---|---|
| Repairs & maintenance | Fixing a leak, repainting, replacing a broken window like for like | Generally deductible against rent |
| Improvements (capital) | Extension, loft conversion, higher-spec kitchen | Not deductible against rent in the UK; capitalised and depreciated in the US |
| Replacement domestic items (UK) | Like-for-like sofa, fridge, carpets in a let dwelling | Separate UK relief with its own rules |
| Letting & management fees | Agent commission, tenant-find fees | Usually straightforward running costs |
| Insurance, ground rent, service charges | Landlord policy, annual service charge | Recurring; check each year's total |
| Legal & professional | Accountant, tenancy agreement, eviction costs | Some legal costs on purchase are capital |
Repairs vs improvements: what HMRC and the IRS say
UK. HMRC allows the costs of maintenance and repairs as rental expenses, and describes a repair as work that restores an asset to its original condition, sometimes by replacing parts of it. Capital expenses — HMRC's examples include adding an extension or replacing a kitchen with a higher-specification one — are not deductible against rent, but you should keep the records because they may reduce Capital Gains Tax when you sell[1]. Replacing furniture, furnishings and appliances in a let dwelling may qualify for replacement of domestic items relief, limited to the cost of an equivalent item if you upgrade[1].
US. IRS Publication 527 says you can deduct repair and maintenance costs if you are not required to capitalize them, but you must capitalize any expense that improves the property. An improvement is one that results in a betterment, restores the property or adapts it to a new or different use; Pub 527's examples of improvements include a new roof, room additions, central air conditioning and kitchen modernization[2].
The rules for borderline jobs are detailed — re-roofing, replacing windows, a full refurbishment between tenants. Record the facts on the receipt as you capture it (what was there before, what replaced it) using a tag or note, and let your accountant make the call.
Making Tax Digital applies to landlords too
MTD for Income Tax covers landlords with property income as well as sole traders[3]. Qualifying income is gross — before expenses — and rental and self-employment income are added together; HMRC's own example is £25,000 of rent plus £27,000 of self-employment income, which takes someone over the £50,000 threshold[4]. The thresholds then fall to £30,000 (from April 2027) and £20,000 (from April 2028)[3].
A landlord in MTD keeps digital records and sends quarterly updates through compatible software. NexaLink is not that software; it keeps the receipts per property and gives you quarterly totals to enter or import. See organising receipts for MTD.
Small landlords should also know about the £1,000 property allowance — but if you claim it, you cannot deduct expenses[1]. Keep receipts until you know which works out better.
Capturing receipts during a void period
Void periods are when receipts pile up: cleaning, redecoration, a new boiler, safety certificates, locks changed. Capture each one on the day and tag it with the void period ("void-2026-09"). Contractors' invoices often arrive by email as PDFs — save them to the phone and capture them so everything for the property is in one place. Long DIY-store receipts go in as one record with long-receipt mode.
- Photograph the condition before major work — it supports the repair-or-improvement decision later.
- Ask trades for invoices that describe the work ("replace damaged section of guttering like for like"), not just "works as agreed".
- Capture gas safety and electrical certificates' invoices under a compliance tag so you can find them at renewal.
Year end and keeping records
At year end, set a custom period for your tax year and review totals per property and category. Export a CSV (free) for your accountant, or a PDF expense report on Pro. Keep improvement receipts long-term — they matter when you sell, potentially decades later. Receipts stay on your phone in NexaLink; keep the annual exports somewhere safe as well. For more, see the tax year end receipt checklist.
NexaLink does not collect rent, track tenants, match bank transactions or produce a property tax return. Many landlords use it alongside a letting agent's statements and accounting software.
Key facts about NexaLink Scanner
- What it is: NexaLink Scanner is a private receipt and expense organiser for iOS and Android, built for freelancers, sole traders, contractors and small businesses. It is not accounting software and does not file tax returns.
- How it reads receipts: text is read on the phone (on-device OCR) and capture works offline. Merchant, date, total and tax are filled in; any value it is unsure of is flagged, and a low-confidence total cannot be saved until you confirm it.
- Where data lives: receipts are stored on your phone and do not sync to the web. Data leaves only when you export it.
- Free plan: 50 receipts, on-device reading, search, 5 default categories and CSV export. CSV export is free on every plan, always.
- Pro: $4.99 a month or $39.99 a year — unlimited receipts, custom categories, projects and tags, a PDF expense report in the app, tax and multi-currency reports. Image ZIP export and Xero / QuickBooks import files are coming soon.
- Accounting connections (none live yet): Xero — First · V1.1 · QuickBooks Online — Next · V1.2 · FreeAgent — Planned · Sage Accounting — Planned · Zoho Books — Planned · TallyPrime — Import file first. CSV export works with any accounting tool today. Status as of 2026-11-10; see accounting integrations.
Frequently asked questions
What receipts should a landlord keep?
Every cost you might claim against rent, and every capital cost on the property. In practice: repairs, maintenance, agent fees, insurance, service charges, professional fees, replacement furnishings, and all improvement work. File each one against the property it relates to.
What is the difference between a repair and an improvement?
HMRC describes a repair as restoring an asset to its original condition; work such as an extension or a higher-spec kitchen is capital. The IRS treats work that betters, restores or adapts the property as an improvement that must be capitalized. Borderline cases need an accountant's view.
Does Making Tax Digital apply to landlords?
Yes. MTD for Income Tax covers property income as well as self-employment income, and the two are added together for the threshold: over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028. Qualifying income is gross rent before expenses.
Can I track several rental properties in one app?
Yes. On NexaLink Pro, create one project per property and a general project for portfolio-wide costs. Totals can then be reviewed per property and per category for any period. Name projects by address so they stay clear years later, when you sell or remortgage and need the improvement costs for that one property.
How long should I keep improvement receipts?
For as long as you own the property and then for the retention period after you sell, because improvement costs can reduce the gain. The IRS says records relating to property should be kept until the limitation period ends for the year you dispose of it.
Is NexaLink a property management app?
No. It does not handle rent, tenants, deposits or bank feeds. It is a receipt organiser that suits landlords because projects map neatly to properties. Use your letting agent's statements or property software for rent and tenancies, and NexaLink for the receipts behind your costs. Export a CSV at year end for your accountant.
How much does it cost for a landlord?
Free covers 50 receipts with five categories and CSV export. Per-property projects and custom categories need Pro, at $4.99 a month or $39.99 a year. See pricing. CSV export stays free on every plan, and if you cancel, your receipts stay on the phone and can still be exported, which matters for long-lived improvement records.
Sources
- GOV.UK — Income Tax when you rent out a property: working out your rental income — checked on 2026-11-10
- IRS — Publication 527, Residential Rental Property — checked on 2026-11-10
- GOV.UK — Check if you're eligible for Making Tax Digital for Income Tax — checked on 2026-11-10
- GOV.UK — Work out your qualifying income for Making Tax Digital for Income Tax — checked on 2026-11-10