8 tips for landlords filing their self-assessment tax return

The government estimates 2.82 million landlords will need to file a tax return before midnight on Saturday, 31 January this year.

If you earn property income, whether from long-term tenancies or short-term lets, such as Airbnb, there are several things you need to consider when filing for the 2024-25 tax year. 

Here, Which? shares eight tips for landlords filing their self-assessments and a key tax change from April that landlords will need to prepare for.

1. Check if you need to file a return

This depends on how much money you made from property between 6 April 2024 and 6 April 2025.

The first £1,000 of your income from property rental is tax-free. This is your ‘property allowance’, so if you don’t earn over this in one year, then you don’t need to declare it or pay tax on it. 

This covers all income earned through rental properties, including furnished holiday lets such as AirBnB, and any income earned on overseas lettings. However, HMRC requires you to keep UK and overseas property income separate on your tax return.

You will need to report your property income through self-assessment if it’s more than: 

• £2,500 after allowable expenses 
• £10,000 before allowable expenses

If your gross property income sits between £1,000 and £2,500, then you should contact HMRC to find out if you need to declare it. If you own a property with other people, each person can claim their own £1,000 allowance against their share of the profit. 

The property income allowance is available to most taxpayers who have to declare income from property to HMRC. However, you cannot use this allowance if you already use the Rent a Room Scheme, if you are claiming for mortgage interest, or if the rental income comes from your own company, your employer, or a business partnership.

• Find out more: best landlord insurance 2026

2. Know what tax rates apply

If you're an individual landlord (your properties are owned in your name, rather than via a company), your buy-to-let profits will be taxed at the same rates as employment income. 

When calculating your tax bill, you'll need to add your rental profits to other income you earned during the tax year.

The income tax bands and rates for the 2024-25 tax year were as follows:

• Tax-free: £0 to £12,570 – 0%
• Basic rate: £12,571 to £50,270 – 20%
• Higher-rate: £50,271 to £125,140 – 40%
• Additional rate: £125,141-plus – 45%

Rates and bands differ in Scotland. 

So, for example, if you earn £45,000 in your day job, you'll pay tax on the money earned above £12,570 at the basic rate of 20%.

If you then add £15,000 in rental income (making a total of £60,000), this would push you into the next tax bracket.

This means you'd pay 20% on your income between £12,571 and £50,270, then 40% on the remaining £9,730.

From April 2027, tax on property income will rise by two percentage points across basic, higher and additional rates in England, Wales and Northern Ireland. The property basic rate will be 22%, the property higher rate will be 42%, and the property additional rate will be 47%.  Scotland applies different income tax rates from the rest of the UK, but has not yet announced a similar move.

• Find out more: UK income tax rates 2025-26 and 2024-25

3. Don't assume you don't need to file

Some landlords choose to manage their rental properties through a limited company. This means that the rental properties are owned by the company rather than the individual landlord.

If you do this, you will report your rental income through a company tax return and pay corporation tax. However, as a director, you may still need to file a personal self-assessment tax return for any income you take out of the company.

For example, you must file if you receive more than £500 in dividend payments, earn untaxed income from other self-employment, or have a total taxable income exceeding £150,000. 

Even if you earn less than these amounts, a return is often required if your tax affairs are not fully covered by PAYE.

• Find out more: 6 things landlords need to know for 2026 and beyond

4. Make sure to claim expenses and reliefs

Allowable expenses are costs you can take away from your rental earnings, but you can only claim for costs that are used only for your rental business. Common examples include:

• Fees for letting agents or accountants
• Repairs and maintenance to keep the property in good condition
• Ground rent and service charges
• Landlord insurance premiums (for the building and items inside)
• Water, council tax, or energy bills that you pay yourself
• Legal costs for making contracts or removing tenants

Mortgage interest tax relief changed in April 2020, and you can no longer deduct mortgage interest from your rental income. Instead, you claim tax relief on mortgage interest as a 20% tax credit. 

It's important to note that buy-to-let mortgage tax relief applies after you calculate your tax bill. 

• Find out more: expenses and allowances landlords can claim

5. Be wary of overclaiming expenses

While it may be tempting to claim as many expenses as possible, be wary of overclaiming. 

For example, landlords can claim a mileage allowance when using their own vehicle for business purposes, such as visiting properties. 

However, they cannot claim the entire cost of filling up the tank through the business unless they can demonstrate to HMRC that they have used the fuel entirely for a work-related journey.

In this instance, you should keep a mileage log for the business miles that you’ve driven. HMRC’s standard mileage rate is 45p per mile for the first 10,000 business miles in the tax year, and 25p per mile thereafter.

• Find out more: becoming a landlord

6. Know the difference between repairs and improvements

You cannot claim for improvements that add value to the property, but you can claim for repairs, so it's important to know the difference. 

For example, replacing a broken boiler would fall under repairs and maintenance. However, installing a new boiler when the old one still works would be classed as an improvement.

So if you're doing work on the property, it's important to categorise the expenses properly. Here's what to keep in mind: 

• Repairs that restore the property to its original state are fully deductible
• Improvements that increase the property’s value are not deductible

Find out more: tenancy agreements explained

7. Make sure you have essential documents

You’ll need specific records to complete your self-assessment tax return accurately and to successfully claim relevant expenses. These documents can  include:

• Bank statements for the account you receive rent from tenants/management company
• Deposits retained for damages
• Any other property-related income
• Mortgage interest payments
• Letting agent fees
• Property maintenance and repairs
• Insurance premiums
• Utility bills, such as energy and water (if you pay them)
• Council tax (if you pay it)
• Ground rent and service charges

You should keep all relevant bank statements, receipts, and invoices organised throughout the tax year. HMRC may ask you to see proof of any claims you make. 

8. Don't miss the deadlines for filing or paying your bill

If you fail to file your tax return before the deadline, you'll trigger an automatic £100 charge. 

Those who fail to file within three months incur additional daily penalties of £10, up to a maximum of £900.

Further penalties are payable after six and 12 months.

The cut-off for paying your tax bill for 2024-25 is also at midnight on 31 January. 

Landlords who don't make the deadline will be charged 5% of the tax that remains unpaid after 30 days, six months and 12 months. Interest will also be charged on late payments. 

• Find out more: late tax returns and penalties