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Start filing →If you receive rental income from a property in the UK, you almost certainly need to file a Self Assessment tax return and pay tax on your rental profit. Here is everything you need to know.
This is gross rental income before expenses. Most landlords are over this threshold.
Do Landlords Need to File Self Assessment?
Yes — if your annual rental income is over £1,000 gross. Most landlords are well above this threshold. You must:
- Register for Self Assessment by 5 October after your first year of rental income
- Declare all rental income in your annual tax return
- Pay tax on your rental profit (not the full rental income)
You pay tax on profit — what is left after allowable expenses are deducted. This often significantly reduces the amount owed.
What Expenses Can Landlords Deduct?
Landlords can deduct a wide range of expenses from rental income:
- Mortgage interest — as a 20% tax credit (not a full deduction, since 2020)
- Letting agent fees and management charges
- Buildings and contents insurance
- Repairs and maintenance (not improvements)
- Gas, electricity, water (if paid by landlord)
- Council tax (if paid by landlord)
- Accountancy and legal fees for tenancy matters
- Replacement of domestic items (furniture, appliances)
- Ground rent and service charges (leasehold)
- Travel to inspect or maintain the property
What Counts as Rental Income?
- Monthly rent from tenants
- Payments for additional services (cleaning, utilities included in rent)
- Premiums for granting a lease
- Income from renting out a room (above the Rent a Room threshold of £7,500)
How to File Your Landlord Tax Return
Calculate your rental income
Add up all rent received during the tax year (6 April to 5 April). Include any other income from the property.
Total your allowable expenses
List and add up all deductible expenses. Keep receipts and invoices. If you have a mortgage, note the interest portion.
Calculate your profit
Rental income minus allowable expenses = taxable rental profit. This is what you pay tax on.
File with SubmitFox
SubmitFox has a dedicated property income section. Enter your income and expenses and it calculates your tax automatically. Submits directly to HMRC.
File your landlord tax return with SubmitFox
Start your return for free — you only pay when you're ready to submit.
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Common Questions
Yes, if your rental income exceeds £1,000 gross per year. The number of properties you own does not affect whether you need to file — it is the amount of income that matters.
No. Since 2020, landlords can only claim a 20% tax credit on mortgage interest — not a full deduction. If you are a higher-rate taxpayer, this means you pay more tax than landlords did under the old system. The mortgage capital repayment element has never been deductible.
Under the Rent a Room Scheme, you can earn up to £7,500 per year tax-free from renting a furnished room in your main home. If your lodger income stays below this threshold, you do not need to file. Above £7,500, you declare only the excess.
Rental losses can be carried forward and offset against future rental profits. You cannot offset rental losses against other types of income (employment, etc.). You should still file a return declaring the loss so it is on record with HMRC.
Rental profit is added to your other income and taxed at your marginal rate. So if your total income puts you in the higher-rate band (40%), your rental profit above that threshold is taxed at 40%. Allowable expenses reduce the profit and therefore the tax.