How to Report Rental Income on Self Assessment: 2026/27

UK landlords normally report rental income and expenses through Self Assessment when the property income is not fully covered by an allowance or otherwise dealt with by HMRC. Report gross rent, allowable expenses, finance-cost relief and property losses for the correct tax year.

When must rental income be reported?

You usually need to tell HMRC where gross property income exceeds £1,000 in a tax year. The £1,000 property allowance can provide full relief for eligible income at or below that amount, but restrictions and other filing reasons apply.

HMRC’s current guidance distinguishes smaller amounts that may be dealt with without a full return from larger gross property income requiring Self Assessment. Use the live checker and respond to any formal notice to file.

Registering for Self Assessment

If you are not already within Self Assessment, notify HMRC normally by 5 October after the end of the tax year. The online return deadline and balancing-payment date are normally 31 January after that. For 2026/27, the usual online deadline is 31 January 2028.

What counts as rental income?

• rent from tenants;
• non-refundable deposits and retained amounts;
• payments for services such as cleaning or utilities;
• insurance receipts replacing rent;
• lease premiums and inducements in relevant cases;
• income from garages, parking or other property rights;
• foreign property income, reported separately where required.

A refundable tenancy deposit is not normally income when received, but amounts retained for rent, damage or other charges can become income or reduce an expense.

Allowable expenses

• repairs and maintenance, excluding capital improvements;
• letting-agent and management fees;
• insurance, service charges and ground rent;
• Council Tax and utilities paid by the landlord;
• accountancy and legal costs relating to the rental business;
• replacement of domestic items where conditions are met;
• travel incurred wholly and exclusively for the property business.

Private costs, capital improvements, the property purchase price and mortgage capital repayments are not rental expenses.

Mortgage interest and finance costs

Individual residential landlords generally calculate profit without deducting qualifying finance costs, then claim a basic-rate tax reduction subject to limits. Enter the figures in the designated finance-cost boxes rather than treating mortgage payments as an ordinary expense.

See landlord mortgage-interest tax relief.

Property allowance versus actual expenses

When eligible, you can deduct the £1,000 property allowance instead of actual expenses. Compare the result. It cannot create a loss and cannot be claimed alongside actual expenses for the same income. Connected-party and Rent a Room restrictions apply.

Cash basis

Cash basis is the default for many individual property businesses with receipts up to £150,000. Report income when received and expenses when paid, unless you elect for accrual accounting or are excluded.

Read landlord cash-basis rules.

Joint ownership

Report your taxable share of income and expenses. Married couples and civil partners living together are generally taxed 50:50 on jointly held property unless actual beneficial ownership differs and a valid Form 17 declaration with evidence is submitted. Other joint owners use their beneficial shares.

Rent a Room relief

Where furnished accommodation is let in your main home, up to £7,500 of gross receipts can be covered, reduced to £3,750 if another person shares the receipts. You can instead choose actual profit where beneficial. Detailed conditions apply to the accommodation and use.

Property losses

A UK property business loss is generally carried forward against future profits of the same UK property business. It is not normally set against salary. Keep the loss schedule and ensure finance-cost carry-forwards are tracked separately.

Foreign rental property

Report foreign property income in the foreign pages, converting amounts using an appropriate sterling rate. Foreign tax credit relief may be available for overseas tax. Residence, remittance and treaty rules can affect the calculation.

Making Tax Digital for landlords

MTD for Income Tax applies from April 2026 where qualifying gross self-employment and property income exceeds £50,000, from April 2027 above £30,000 and from April 2028 above £20,000. Those within scope must keep digital records, send quarterly updates and complete an end-of-year declaration through compatible software.

Return checklist

1. Reconcile rent to bank and agent statements.
2. Separate deposits, service income and reimbursements.
3. Classify repairs versus capital improvements.
4. Calculate finance costs outside ordinary expenses where required.
5. Apply the correct ownership split.
6. Update property losses and finance-cost carry-forwards.
7. Complete UK or foreign property pages.
8. Retain submission and payment confirmations.

Official guidance

• HMRC: paying tax on rental income
• HMRC: working out rental income

This guide is general information. Joint ownership, foreign property and relief claims can require advice.