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Zero-hassle landlord tax

Sorting your taxes should be simple. Not painful, 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.

rent-to-rent landlord tax
rent-2-rent 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 tax tip 💡

Even if you don’t own the property you’re renting out, you still count as a landlord in the eyes of HMRC. This means you’ll have to declare your rental income and potentially pay tax on it. Make sure you register for Self Assessment by 5th October to be able to do this.

Get your rental income tax toolkit

Stay on top of your Rent2Rent 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

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Songs to get you in the mood (for tax filing)

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Tax deadline calendar

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