How it works
1. AI reads the statement
An AI model (Anthropic's Claude) reads your statement and copies out every money line: date, property, description and amount. It labels each line with what the statement says it is, from the list below, for example “rent received” or “agent's fee”. It doesn't decide anything about your tax.
2. Fixed rules suggest the type and HMRC category
The same rules apply to everyone. They're ordinary code, not AI. Where the treatment depends on your circumstances, the line is highlighted or left for you to decide.
| What the line is | Suggested type | HMRC category |
|---|---|---|
| Rent received from the tenant | Income | Total rents from property |
| Other money paid by the tenant (fees or recharges the tenant paid) | Income | Other property incomeHighlighted for you to confirm |
| Letting agent's fee or commission (management, tenant-find, renewal, inventory, check-in or check-out, admin, postage) | Allowable expense | Legal, management and other professional fees |
| Fee for registering a tenancy deposit | Allowable expense | Legal, management and other professional feesHighlighted for you to confirm |
| Repair, maintenance or servicing work | Allowable expense | Property repairs and maintenance |
| Something new supplied or installed, or building work (for example a new kitchen or an extension) | Needs your decision | You chooseHighlighted for you to confirm |
| Safety or energy certificate (gas safety, electrical report, EPC) | Allowable expense | Property repairs and maintenanceHighlighted for you to confirm |
| Insurance premium | Allowable expense | Rent, rates, insurance, ground rents and other costs |
| Ground rent or service charge | Allowable expense | Rent, rates, insurance, ground rents and other costs |
| Utilities or council tax paid for the property | Allowable expense | Rent, rates, insurance, ground rents and other costs |
| Services for tenants (gardening, cleaning) | Allowable expense | Cost of services provided, including wages |
| Tax withheld by the agent (non-resident landlord scheme) | Tax withheld by the agent | Tax already deducted from rental income |
| Tenancy deposit received, held, returned or paid to a deposit scheme | Not income or expense | Not in your MTD figures |
| Float or retention held back or released by the agent | Not income or expense | Not in your MTD figures |
| Money the landlord paid in | Not income or expense | Not in your MTD figures |
| Transfer between the landlord's own property ledgers | Not income or expense | Not in your MTD figures |
| Anything else | Needs your decision | You chooseHighlighted for you to confirm |
A few extra rules use the statement's own wording. A repair line that mentions something new, fitted, installed, an extension, a conversion, an upgrade or a refurbishment is left for you to decide, because improvements (capital) aren't an allowable expense. An energy performance certificate (EPC) is suggested under “Other allowable property expenses”. A tenant-find or letting fee is highlighted, because HMRC treats the agent's fees for a property's first letting of more than a year as capital.
3. Plain arithmetic checks it
The lines, plus any balance the agent held at the start and minus any held at the end, should equal what the statement says you were paid. That check is ordinary arithmetic. If it doesn't match, the tool says so.
4. You decide
You see every line and can change any type or category before downloading. The spreadsheet is yours to check before anything goes to HMRC. This isn't tax, accounting or legal advice. If you're unsure how something should be treated, check GOV.UK or ask an accountant.