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Zero-hassle landlord tax
Sorting your taxes should be quick and painless. Not long, pricey and stress-inducing.
That’s why we created a one-stop-shop for everything landlord tax. Think rental income tax calculators, how to guides, tax tips, downloadable tax management tools, and more. Click through the tabs below for tax help, made for you.
Your situation
Tax and profit
- Earnings from rent£18,000Incl. £1,000 tax-free property allowance
- Property tax to pay£4,346
- After-tax rental income£13,654
How your rental income tax is calculated
Your total rental income tax that you have to pay to HMRC depends on three things:
- How much you earned from rent
- If you also live there or not
- How much you earned from other income sources (salary, self-employment, etc., but not capital gains)
In your case you earned £18,000 from renting out a buy to let property, on top of £38,000 from other sources.
Rental income tax breakdown
Your rental earnings are £18,000
You can claim £1,000 as a tax-free property allowance.
As a result, your taxable rental income will be: £17,000.
The first £12,270 will be taxed at 20%: £2,454 in rental income tax.
The next £4,730 will be taxed at 40%: £1,892 in rental income tax.
Landlord tax made simple
Confusing tax jargon and long policy and regulation documents? No sir-ee. Understand what tax you owe (and why) in plain, simple language. We’ve hand-selected our most popular articles for resident landlords here.
Not found the info you need?
- Joint tenants vs tenants in common – what does it mean for tax?
- What were the Capital Gains Tax changes in 2020?
- How to pay tax on rental income
- The Property Income Allowance: worth claiming?
- Hosting on Airbnb: how much tax do you need to pay?
- How much is the Capital Gains Tax on property?
- How to pay rental Income Tax from jointly owned properties
- How to use the Rent a Room Scheme
- 3 examples of how the mortgage tax relief changes impact you
- Mortgage interest tax relief changes explained
- What taxes do landlords have to pay in the UK?
Top tip for resident landlords 💡
Did you know that you can earn up to £7,500 per tax year in rent, tax-free with the Rent-a-Room Scheme? You won’t even need to file a tax return.
What is the Rent-a-Room scheme?
Do you have a lodger but didn’t realise this meant HMRC classes you as a landlord? Watch this 10(ish) second video to learn more about what you can do.
Get your rental income tax toolkit
Stay on top of your live-in-landlord tax responsibilities with our Tax Return Toolkit. Get a template spreadsheet to format and record your income and expenses for the tax year, check out our Spotify channel for playlists for every tax filing mood, or download our tax deadline calendar straight into your Gmail.
Rental income and expenses template
Download template
Songs to get you in the mood (for tax filing)
Listen now
Tax deadline calendar
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Got a tax-related problem?
We can help. As well as filing your tax return, we also offer one-off tax advice from an accredited accountant. Totally remote, no strings attached.
Book a tax advice consultation for 1-1 professional support by phone or video call. £119, all in. Learn more.
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