You must register as a Landlord with HMRC and pay tax on any profits you make from renting out a property by reporting your earnings on a self assessment tax return.
How to Register as a Landlord With HMRC
You can register as a Landlord on the HMRC website. If you have never registered before then you can do this on the HMRC website here. You must register by the 5th October following the tax year that you started receiving rent. A tax year runs from 6 April to 5 April. For example, say you begun receiving rental income on 31 January 2017, then you should let HMRC know about this by 5 October 2017 so you submit a self assessment tax return and pay tax on these earnings by 31 January 2018.
If you are already registered for self assessment for another reason for example you are self employed, then you need to notify HMRC that you have a new form of income as a Landlord by filling out a CWF1. Again you can do this online here and you’ll need to have your UTR (Unique Tax Payers Reference) number ready for this application process.
What Happens Once You Are Registered as a Landlord
Once registered as a landlord with HMRC you will need to complete a self assessment tax return to declare any rental profits you make and pay any tax due. The amount of tax you pay will depend on your personal circumstances and how much profit your rental property makes.
Your self assessment tax return covers a complete tax year (6th April to 5th April) and is due for filing by the 31 January of each year, along with paying any tax due. So for example your tax return for the tax year 2017/2018 (6th April 2017 to 5th April 2018) is due for filing by 31 January 2019.