Journey

Self Assessment for landlords

A learning path for landlords who need to report rental income through Self Assessment. Covers registration, reporting property income on SA105, allowable expenses, mortgage interest restriction, and Making Tax Digital.

Running a Business Updated 15 September 2026

5 milestones references 5 guides

Self Assessment for landlords

If you receive rental income from UK property, you must report it to HMRC through Self Assessment. This journey covers everything from registration to filing, with specific guidance on the SA105 property income supplementary page.

Register for Self Assessment

You must register for Self Assessment if your rental income exceeds the property allowance. Register by 5 October following the end of the tax year in which you first received rental income.

Register for Self Assessment

How to register, deadlines, and what to expect after registration.

Registration deadline

Register by 5 October following the end of the tax year in which you started receiving rental income.

Registration deadline

5 October following the end of the tax year

Example: Tax year 2024/25

Register by 5 October 2025

Who must register

Self-employment income exceeds £1,000 in the tax year

UTR delivery time

Posted within 10 working days (21 days if overseas)

Activation code

Sent separately by post
Understand how property income is reported

Rental income is reported on the SA105 property income supplementary page. You can either use the property allowance or claim actual expenses — but not both.

Report property income on your Self Assessment

SA105 guidance, property allowance, allowable expenses, mortgage interest restriction, and FHL abolition.

Property allowance

You can use the property allowance instead of claiming expenses if your total property income is below the threshold.

When to use SA105

You received rental income from UK land or property

Property allowance

£1,000 tax-free (cannot also claim expenses if using this)

Allowable expenses

Letting agent fees, repairs, insurance, ground rent, service charges, accountancy fees

Mortgage interest relief

20% tax credit only (not deducted from rental profits)

Furnished Holiday Lettings (FHL)

Abolished from 6 April 2025 - no longer separate treatment

Rent-a-room relief

£7,500 tax-free for letting a furnished room in your home

Loss carry forward

UK property losses carry forward against future UK property income only

If your total property income is below £1,000, you can use the property allowance instead of claiming expenses. If above £1,000, you must report the income, but you can choose either to deduct the £1,000 property allowance as partial relief or to claim actual allowable expenses. You cannot use both.

Work out your rental income (opens in a new tab)

Mortgage interest restriction

Residential landlords receive a 20% tax credit for mortgage interest instead of a full deduction. This particularly affects higher-rate taxpayers.

Current rule (from April 2020)

Mortgage interest is not deducted from rental profits

Tax credit

20% tax reduction on the lower of finance costs, property profits, or adjusted total income

Effect on higher-rate taxpayers

Previously deducted at 40% or 45%, now only 20% relief

What counts as finance costs

Mortgage interest, interest on loans to buy furnishings, fees for loans or overdrafts

Where to claim

SA105 boxes for finance costs and tax reduction

Excess finance costs

Can carry forward unused finance cost relief to future years

Commercial property

Restriction does not apply - full deduction still available

Furnished Holiday Lettings

Full deduction was available until 5 April 2025 (FHL regime abolished)

The mortgage interest restriction particularly affects higher-rate taxpayers with buy-to-let mortgages. A landlord paying 40% tax previously deducted mortgage interest at 40%, but now only receives a 20% tax credit. This can push some landlords into a higher tax bracket as the full rental income is taxed before the credit is applied.

Tax relief for residential landlords (opens in a new tab)
Keep proper records

Keep records of all rental income and expenses. You must retain records for at least 5 years after the 31 January filing deadline.

Keep business records as a sole trader

Record keeping requirements, retention periods, and acceptable formats.
File your return

Include the SA105 property income supplementary page when you file. Online filing automatically includes it based on your answers.

File your Self Assessment tax return

Step-by-step filing guide with deadlines and guidance on supplementary pages.

Filing deadlines

Key dates for filing your Self Assessment tax return.

Paper return deadline

31 October 2026 (11:59pm)

Online return deadline

31 January 2027 (11:59pm)

Earliest submission date

6 April 2026

Pay through tax code deadline

30 December 2026 (to collect via PAYE)

Amendment window

12 months from the Self Assessment deadline

Paper returns must be received by HMRC, not just posted. Online filing is recommended as it provides immediate confirmation.
Prepare for Making Tax Digital

MTD for Income Tax applies to landlords as well as sole traders. If your combined property and self-employment income exceeds the threshold, you will need MTD-compatible software and must submit quarterly updates.

Prepare for Making Tax Digital

Phased rollout thresholds, software requirements, and quarterly deadlines.

MTD thresholds

MTD for Income Tax is being phased in from April 2026 based on combined self-employment and property income.

Phase 1: From 6 April 2026

Qualifying income over £50,000 (approx. 780,000 individuals)

Phase 2: From 6 April 2027

Qualifying income over £30,000 (additional 970,000 individuals)

Phase 3: From 6 April 2028

Qualifying income over £20,000

Qualifying income definition

Combined self-employment and property income (excludes employment, pension, savings, dividends)

Requirements: Keep digital records, use MTD-compatible software, submit quarterly updates, submit final declaration by 31 January.

Find MTD-compatible software (opens in a new tab)

Self Assessment for landlords

Self Assessment for landlords

Register for Self Assessment

Register for Self Assessment

Understand how property income is reported

Report property income on your Self Assessment

Keep proper records

Keep business records as a sole trader

File your return

File your Self Assessment tax return

Prepare for Making Tax Digital

Prepare for Making Tax Digital

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