With another tax return season approaching, it’s crucial to get informed and take action promptly.

If you earn rental income in the UK, you are obligated to pay income tax as per regulations.

Similar to self-assessment tax returns, the final deadline is January 31, 2024.

Income Tax on Rental Income

As a landlord living and working in the UK, income tax is an essential aspect of your tax obligations.

Rental income needs to be included in your overall income and taxed accordingly.

The current UK income tax rates are as follows.

If you are unsure about the calculations, consulting a professional accounting team can assist in computation and filing.



Once you generate rental income in the current fiscal year, you must submit your tax return and pay any taxes owed by January 31 of the following year.

Missing the tax return deadline incurs a £100 penalty notice from HMRC.

For delayed submissions of 3 to 6 months, additional fines accumulate at £10 per day.

Delays of 6 months or more result in an extra £300 or 5% of the tax due (whichever is higher).

Penalties and Interest

Submitting the tax return on time but failing to pay the tax before January 31 also incurs fines.

A penalty of 5% of the tax due is applied for delays of 30 days to 6 months.

For delays of 6 to 12 months, an additional 5% accumulates, and for delays of 12 months or more, an extra 5% is added.

Apart from the fines, late payment interest, currently at a rate of 7.75%, is also charged.

If you’re uncertain about whether to file a tax return or have other questions, it’s advisable to consult an accountant promptly to avoid additional fines and interest.


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