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In this guide we break down everything landlords and property investors need to know about self-assessment tax returns.
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Written by
Ben Luxon
PUBLISHED ON
Jan 20, 2025
Managing your landlord self-assessment can feel overwhelming, especially with complex rules, deadlines, and financial jargon. As a landlord, staying compliant with HMRC while accurately reporting your self-assessment rental income is essential to avoid penalties and ensure smooth tax filing.
That’s where Landlord Studio comes in. Our easy-to-use rental accounting software is designed specifically for landlords, helping you track rental income and expenses effortlessly so you’re always prepared for tax season.
This guide will walk you through everything you need to know about landlord self-assessment, from key deadlines to Making Tax Digital (MTD) requirements and how to streamline your tax reporting process.
If you earn rental income in the UK, you are required to report it to HMRC through a landlord self-assessment tax return. Unlike salaried employees who have tax deducted automatically via PAYE, landlords must calculate, report, and pay their own tax on rental income.
A self-assessment rental income tax return ensures HMRC is informed about how much you have earned from letting out property so that you are taxed correctly. Even if you use an accountant, it remains your responsibility to ensure the accuracy of the information submitted.
While the self-assessment process may seem complex, most landlords only need to complete the relevant sections of the tax return. Using property management and accounting software like Landlord Studio, which integrates income tracking with HMRC tax reporting, can streamline this process and make compliance much easier.
Making Tax Digital (MTD) is a government initiative aimed at modernising the tax system by requiring taxpayers to keep digital records and submit returns using compatible software.
The implementation schedule for landlords is as follows:
Under MTD, landlords will need to:
Submitting tax returns every quarter may seem daunting, but utilising software like Landlord Studio, which is recognised by HMRC, makes the process much simpler.
If you would like to know more about Making Tax Digital and its implications for landlords, you can visit our page dedicated to the topic.
Generally speaking, if you’re self-employed or have additional income earned outside of your current employment (eg. rental income) then the chances are you will need to complete a self-assessment rental income tax return.
You will need to file a self-assessment if any of the following apply:
Alternatively, there are a couple of situations where you may choose to complete a self-assessment tax return, such as proving self-employment or to help claim some forms of Income Tax Relief. By understanding your landlord self-assessment obligations and utilising tools like Landlord Studio, you can simplify tax reporting, ensure compliance, and avoid potential penalties from HMRC.
For those unsure, the HMRC has a tool you can use for determining if you need to submit a self-assessment tax return. You can find that tool here.
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Now that we’ve covered the basics of what as self-assessment is and who needs to file one, the next step is to learn how to actually submit it.
There are several ways software can help you complete a self-assessment tax return.
Software, like Landlord Studio, can help you keep accurate, up-to-date digital financial records (in line with future MTD requirements) so when it comes to tax time all you need to do is run a report. Landlord Studio is designed to make your income and expense tracking for your rentals as easy as possible with default expense categories in line with property tax requirements, and over 15 financial reports designed to help you gain a clear and nuanced oversight of your property portfolio financials whenever you need it.
There are, however, a couple of things that software can’t yet do. Namely, you can’t register for online self-assessments through software and you can’t pay through the software. Registering for a self-assessment tax return, and paying your final tax bill, must be done directly through HMRC.
There are plenty of options on the market today and when selecting the right software for you need to consider your specific needs.
For example, as a sole trader, you might explore an accounting platform designed for small businesses such as Xero. However, if you only have a small business with few expenses and a small amount of income you might want to explore a simpler and more affordable option.
For landlords, having an industry-specific solution is important. Alongside your specific accounting needs, such as tracking income and expenses for each of your properties and reporting on specific tenancies and tracking rent payments there are also a range of property management functions you need. These include being able to store important compliance documentation such as your EPC, tenancy agreement, and gas safety and electrical safety certificates, manage and track current and historical tenancies, and track property maintenance.
Finally, you should make sure the software you choose is easy to use, and affordable.
Landlord Studio is designed by landlords for landlords. We’ve got over 45,000 properties currently managed on the system, and Landlord Studio pricing starts at FREE.
Registering for a self-assessment tax return is fairly simple. All you need to do is register via the HMRC website in order to create an account. To create an account there are a few pieces of information you will need to hand, including:
Once you’ve created an account, you should receive a Unique Taxpayer Reference (UTR) number within 10 days via post (21 days if you’re abroad). After that, you’ll then receive an activation code for your account and you are ready to go. You then have everything you need in order to get started filling in your self-assessmentfor rental income.
Just remember to keep this information somewhere safe - you will need it fairly frequently during your tax journey!
With your registration to HMRC complete, your Government Gateway ID and password, and your UTR number in hand, you are now ready to begin filling out your self-assessment tax return. However, to complete it, you’ll need a few more core pieces of data and information.
Unique Taxpayer Reference (UTR) number
When doing your tax return on the HMRC website, it's important to know that some jargon is unavoidable. For example, a key part of the tax return is the SA100 form. This stands for "Self-Assessment 100". It's an 8 page form that includes:
The SA100 form may seem official and daunting, but the HMRC’s system makes it relatively easy with simple check-boxes and short answer requirements. As long as you’ve prepped all the necessary information first it shouldn’t take that long.
However, HMRC can make things more complicated, and there may be other forms you need to fill out in addition to the SA100. For landlords these may include:
For self-employed or business owners these may include:
If you’re unsure which forms you need to complete consult with a licensed tax professional. You can learn more about the different tax returns on the HMRC website.
The last thing you want is to get to the end of the year, fill out your self-assessment ad then realise your tax bill is far higher than you expected and you can’t pay it.
As such, you should keep an accurate real-time record of your expected end-of-year tax bill throughout the year. There are several ways you can do this. Use a spreadsheet or you can use the HMRC’s self-employed income tax calculator.
In order to get an accurate tax bill estimate, you will need to have accurate and up-to-date data. The easiest way to do this is to use software like Landlord Studio to record your rental property expenses in real-time using our time-saving automation and accounting tools like bank feeds and smart scan receipt, and then instantly generate an income and expense report when you need it.
Let’s look at a landlord tax return example that can help illustrate how to calculate your taxable rental income.
Suppose you earn £25,000 in rental income over the year. After deducting £8,000 in allowable expenses such as repairs, letting agent fees, and accountancy costs, your taxable income would be £17,000. If you fall under the basic tax rate of 20%, you would owe £3,400 in tax.
Making sure to accurately record your income and expenses will not only help you comply with HMRC requirements but also minimize your tax liability. Learn more about landlord tax returns example here.
Related: 7 Costly Mistakes Landlords Make On Their Self-Assessment
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Now that you understand what self-assessment is and how to submit it, it's time to discuss the least favourite part - paying it. Read on for details of the process and how to make it as easy as possible.
Paying is simple and can be done on the HMRC’s website. There are seven methods for paying depending on your preference:
Depending on the method you choose, you may need to wait up to five working days, so it’ is best not to leave it until the last minute.
The official tax return deadline is the 31st of January the following year.
However, the payment is actually split into 3 parts.
If your liability Is over £1000 then you will be required to make Payments on Account towards your next years tax liability. Your payment on account is calculated by using the last years liability - 50% of this liability is paid on the 31st January as Payment on Account 1.
This can be a bit confusing, so it’s always worth consulting with your accountant if you’re uncertain about what and when you need to pay. Generally speaking, it’s good practice to finalise your accounts, file, and pay your tax return as promptly as possible after the tax year ends in April.
It’s also important to note that though MTD will change the filing dates to quarterly the payment due date won’t be changing.
The HMRC is generally fair when it comes to paying. They are more interested in getting the money than they are in punishing you for not being able to afford it. As such, there are a number of options available.
However, if you do think you might not be able to pay you need to contact the HMRC as soon as possible to discuss these alternatives directly with them. If you are late with your payments you will be penalised with additional fees and interest rates.
You can find out more about your options if you cannot pay your self-assessment tax return bill here.
The current deadlines for filling in your self-assessment tax return are:
This will all change when Making Tax Digital for Income Tax comes into effect. Instead of one large end-of-year job, you will need to submit quarterly returns and an end-of-year statement. For landlords, this could mean multiple returns each quarter depending on the property class(es) you own (eg. furnished holiday lets, residential lets, foreign holiday lets). If you’re worried about this change we recommend consulting with your accountant.
At Landlord Studio we are dedicated to making this transition as easy as possible, with easy-to-use digital record-keeping tools and simple direct integration with the HMRC (which will be complete before teh 2026 deadline). Meaning as long as you keep your records up to date your submissions will be simple. Plus, with up-to-date records in Landlord Studio, you’ll have better financial oversight of your portfolio and overall cash flow.
There are, unfortunately, penalties for people who file their self-assessment late.
If your return is up to 3 months late, you may face a fee of up to £100. For self-assessments that are over 3 months late, and for any payments made late, the fine could be significantly larger.
If you have a valid reason for not filing your return, you may appeal any fine or penalty. However, it's important to note that the excuse must be valid, otherwise you will still be required to pay the penalty.
Learn more about late penalties on the HMRC’s website here.
We've covered a lot of ground and we're almost there. If you've followed this article, you now know what self-assessment tax returns are, when you need to submit one, and how to fill it out.
But, what's next? Now that you are familiar with the process, there are a few other things to consider. Do you need an accountant? What are the benefits of using software? And what does the future hold for self-assessment tax returns? Let's take a quick look.
There isn’t a cut-and-dry response to this question, unfortunately. A landlord self-assessment can vary from very simple to extremely complex, depending on your personal situation and portfolio. Whilst you don’t necessarily need an accountant, you may want one. Accountants can do more than just help with your tax return. They can offer financial advice, help with achieving long-term financial goals, and mitigate future tax bills.
Generally speaking, as a landlord, you will want an accountant if:
Accountants can also help with education about new tax regulations, for example, the recent Section 24 changes which came into full effect in 2020.
Even as a landlord, tax return season can be a smooth and stress-free process, particularly if you use software to help you along the way. The help of software can be beneficial to all landlords in this process, but especially if:
Software, like Landlord Studio, can help you manage your rental property finances, plan for tax time and make the process of submitting your self-assessment for rental income simpler while simultaneously reducing the chance of mistakes.
The HMRC’s plans for MTD have been delayed, but they’re still coming. This marks the biggest change in recent history regarding how people manage their accounts and report their taxes and shows the HMRC’s commitment to bringing taxes into the modern day.
Rental accounting digitisation seems inevitable. But this doesn’t have to be a bad thing. In fact, those that adopt the right systems early on will benefit massively. It’ll give them greater insight into their financials allowing them to spot discrepancies and mistakes in their accounts, identify potential weaknesses and areas that could be cut back, and ultimately save them time and money.
We talked to one customer who realised after using Landlord Studio for a few months, that one of his properties was only making £14 per month. With this information, he was able to make targeted business decisions to consolidate his assets and improve cash flow. Without this data at hand, he would never have known. Read Landlrod Studio reviews.
Landlord Studio is more than just a digital record-keeping tool though. It’s a full-service property management system that can help you streamline everything from property maintenance to compliance management. With Landlord Studio you can:
Landlord Studio is an affordable award-winning solution designed for landlords. And your first 3 properties are completely FREE.
Create your free Landlord Studio account today and see how we can help you turbocharge your rental property management and accounting.
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Landlord Studio is an easy to use MTD compliant property management and accounting software designed for UK landlords.
Track income and expenses, run reports,, find and prescreen tenants, manage property maintenance, and more.
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