If you’re a UK landlord living in the country or abroad, you’ll need to file a Self Assessment tax return each year to report the rental income you’ve earned.
It’s true that some of the tax advantages of buy-to-let have been scaled back over the years — but that doesn’t mean there aren’t still smart ways to reduce your tax bill.
Knowing exactly which expenses you can claim, when to file and what you’ll owe, is essential. Not only will it help you stay compliant, but it could also save you a decent chunk of money and keep you clear of any unnecessary fines.
What Every UK Landlord Needs to Know About Filing Tax Return:
Filing your tax return doesn’t have to be stressful — but there are a few key things every landlord should stay on top of. Here’s what you need to consider:
Registering for Self Assessment as a Landlord
If you’re earning income from rent and aren’t already registered for Self Assessment, here are your next steps.
- You’ll need to register with HMRC by no later than 5 October following the end of the tax year in which you received rental income.
- Get know of the allowable expenses and information you need to keep or engage with an accountant experienced in rentals.
- Once you’re set up, you’ll be able to file your tax returns and pay what you owe online.
- Don’t miss understanding your payment on accounts as with the right knowledge it can put cash in your pocket.
- If you struggle to pay the full amount in one go, there are options to split the payments without penalities.
Important HMRC Deadlines Landlords Can’t Afford to Miss
Timing matters when it comes to tax. Miss a deadline, and you could face fines or interest charges. Here are the ones landlords need to remember:
- 31 October – Paper tax return deadline
- 31 January – Online tax return deadline and due date for any tax owed
- 31 July – Second payment on account deadline (if applicable)
Mark them in your calendar to stay ahead of the game.
Understanding What Tax, You Owe as a Landlord
Your rental income will usually be added to any other income you earn (like a salary or freelance work) and taxed according to your income tax band.
If your rental income is under £1,000 for the year, you might not have to declare it — thanks to the property income allowance. Anything above that, though, will need to be reported and taxed accordingly.
What Landlord Expenses Can You Legally Claim?
You can reduce your tax bill by deducting certain costs associated with running your rental property. These allowable expenses include:
- Letting agent fees
- Maintenance and repairs (not structural changes)
- Mortgage interest (restricted to 20% tax relief)
- Council tax, insurance, and utilities (if paid by you)
- Accountant or legal fees
- Replacement of domestic items (like sofas or white goods)
Make sure you keep all receipts and records — you’ll need them if HMRC ever asks questions.
Smart Tax Tips to Stay Organised and Avoid Surprises
- Keep detailed records of income and expenses throughout the year even if the expenses are capital in nature, such as repairs, as these can be allowable expenses for capital gain tax.
- Use accounting software or a spreadsheet to track everything or inform you accountant so they keep records for you.
- Consider working with an accountant if things get complicated
- Don’t leave it to the last minute — the earlier you file, the less stressful it is
How to Register for Self Assessment (First-Time Landlords Guide)
If you’ve never submitted a tax return before, you’ll need to register with HMRC before you can get started. Ideally, you should register by 5 October in the calendar year after you started receiving rental income — but don’t panic if you’ve missed that date. In many cases, it’s still possible to register a little later.
Here’s how to do it:
- Use HMRC’s eligibility tool: Start by completing the quick tool on the HMRC website to check whether you actually need to register.
- Get your details ready: If you do need to register, make sure you have the following to hand: Full Name, Date of Birth, Home Address, Phone Number, National Insurance Number, Passport, Driving License, Evidence of your Address
- Register online: Head to the HMRC website and start the registration process. If you haven’t already set one up, you’ll need to create a Government Gateway user ID and password to access the system.
- Fill in your financial details: HMRC will ask some questions about your income and financial situation. Follow the steps, submit the form, and you’re good to go.
- Wait for your UTR number: After you register, HMRC will post your Unique Taxpayer Reference (UTR) number — a 10-digit code that usually ends with a letter ‘K’. You’ll need this number for every tax return you submit.
It usually arrives within 15 days, or 21 days if you’re based overseas. If you need it sooner, you may be able to find it in the HMRC app or by logging into your personal tax account online.
Tax Return Filing Dates & Penalties: Stay Ahead of Schedule
When it comes to tax returns, timing is everything. Missing a deadline can be costly — literally. Here’s what you need to know:
- Paper returns must be received by HMRC no later than 31 October. That’s the date your documents need to arrive, not the day you post them — so don’t leave it too close.
- Online returns give you a bit more time, with a deadline of 31 January.
Failing to meet these deadlines triggers an automatic £100 fine, even if you don’t owe any tax. If your return is more than three months late, daily penalties of £10 per day kick in (up to £900). After six months, you could face a charge of 5% of the tax due or £300, whichever is higher.
In short: get it done on time to save yourself stress and money. A little organisation now can spare you a big headache later.
Why Filing Early Could Save You More Than Just Stress
Remember, 31 January isn’t just the deadline to file your return — it’s also the date by which any tax you owe must be paid. That’s important to keep in mind, especially if you’re working with an accountant. They’ll need enough time to prepare your return, and you may also need to dig out paperwork like your total rental income for the year and any expenses you’ve incurred.
Getting started early gives you more time to plan — and can even reduce how much you need to pay.
“If you leave the preparation of your tax return until close to the filing deadline, you may find yourself with a nasty surprise when your tax liability is calculated so close to the payment due date,” says Chloe Moss, Chartered Accountant at Tunstall Accounting.
“I always recommend that clients prepare their returns as soon after the end of the tax year as possible.
If clients are making payments on account, filing before 31 July could reduce that second payment if their income is lower than expected. So it’s always a good idea to aim for an earlier filing date.”
The earlier you get things sorted, the more flexibility you’ll have — and the less likely you
How Much Tax Do Landlords Pay on Rental Income?
As a landlord, you’ll usually need to complete a Self Assessment tax return to declare your rental income — even if you already pay tax through your job. HMRC wants to see the full picture of your income, including any earnings from rent, employment, self-employment, or other sources.
That said, not everyone will owe tax. If your rental income is below certain thresholds, you might not pay anything — but you’ll still need to submit a return to let HMRC know.
Here are a few key allowances to be aware of:
- Personal allowance: You can earn up to £12,570 tax-free across all income sources (for the 2024/25 tax year).
- Property allowance: If you earn income from land or property, you may be able to claim a £1,000 tax-free property allowance.
- If you jointly own a property, each person can apply the £1,000 allowance to their share of the rental income as discussed above.
- Just note: if you use this allowance, you can’t also deduct allowable expenses for the same income.
Tax tip: If your gross rental income is between £1,000 and £2,500, you’ll need to contact HMRC directly for guidance.
If it’s over £2,500, you must register for Self Assessment.
Finally, if you’re letting out a room in your own home, you might qualify for the Rent a Room Scheme, which lets you earn up to £7,500 per year tax-free — a great way to earn extra without adding to your tax bill.
Mortgage Interest Tax Relief for Landlords
One of the biggest tax perks for buy-to-let landlords used to be the ability to fully offset mortgage interest against rental income. But since changes were introduced in April 2017, things have shifted quite a bit.
Now, instead of deducting mortgage interest from your rental income, landlords receive a 20% tax credit on the interest portion of their mortgage payments — regardless of their income tax band.
For higher-rate taxpayers, that’s a significant drop. Previously, they could claim relief at 40%, so the change means more of your rental income is now taxable. In some cases, this could also push landlords into a higher tax bracket, increasing their overall tax liability.
“Tax relief is only permitted on the interest element of any mortgage payments, not the capital repayment,’ says HMRC.
“You’ll need a statement from your lender showing how much interest you’ve paid during the tax year.”
It’s also worth noting that:
- This tax credit cannot create a refund — it only reduces the amount of tax you owe.
- Unused tax relief can be carried forward and used in future years.
For a deeper look at how these rules work, check out our guide to buy-to-let mortgage tax relief.
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