We subscribe and have done for a while. But we also pay an accountant and have done for 15 years same company - but it was taken over 5 years ago. I noticed on our return today, (we gave the accounts in May!) that there’s no allowance for the £8,000 mortgage interest and looking back there wasn’t last year, but in 2019-2020 it was £3,500 and in 2018-2019 was £7,500. I am self employed but made a loss in the pandemic (fitness teacher) years. I get a state pension and two small private ones all taxed at source. My wife is PAYE on £10,00 a year and we get about £23,000 pre expenses on 3 rentals. Have they messed up? 

Arthur Weller replies:  

It is correct that currently, mortgage interest is not an allowable expense against rental income. But it was fully allowable in 2016-17, and for the next four tax years afterwards, it was reduced by 25% each year. However, whenever the mortgage interest is disallowed, it is possible (per certain rules) to use it as a tax reducer @ 20%. For example, your £23,000 rental income is fully taxable, but you should get £1,600 (20% of £8,000) knocked off your final tax bill.