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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.

Resident landlord tax
Resident landlord tax

Your situation

Outlined number oneOutlined number one
What kind of landlord are you?
Monthly rental income
Annual salary
?
Other income
?

Tax and profit

Outlined number two
  • Earnings from rent
    £18,000
    Incl. £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.

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.

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

Download calendar

How can TaxScouts help?

Want us to take your lodger tax responsibilities off your hands? Scroll down to learn more about our TaxScouts services. We’re adding new tools and polishing our existing services all the time, to make sure we’re bringing our community the crème de la crème of simple, online tax help.

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Tax advice

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  • Get quick, simple tax advice

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