Do I pay tax on rental income?
Yes, on the profit, once you exceed the £1,000 property allowance.
3 min read · Updated 2 August 2026
Overview
Rental profit is taxable. Individuals report it through Self Assessment; a £1,000 property allowance means very small amounts need not be declared. Companies pay corporation tax on rental profits instead.
Practical guidance
- Register for Self Assessment by 5 October after the tax year in which you first have property income.
- Track income and costs monthly rather than reconstructing them in January.
- Making Tax Digital for income tax is phasing in — check whether your rental turnover brings you into scope.
Related content
General information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.