Mortgage interest can be set against income tax by the self-employed

The self-employed can take advantage of new guidance from HM Revenue and Customs (HMRC) that allows them to set a range of costs against their income tax.

These costs can include mortgage interest payments, council tax and home insurance.

HMRC said that, as far as they were concerned, self-employed workers had always been in a position to claim mortgage interest payments against their tax.

However, the latest guidance makes this entitlement clear for the first time.