Rental Income Tax Calculator

Managing rental income tax can seem like a lot to handle, but with our Rental Income Tax Calculator, it’s simple. Just enter your rental income details, including the total income you’ve earned and any expenses you’ve incurred. The calculator will then give you an accurate estimate of how much tax you’re likely to pay. Whether you own one property or several, this tool takes the stress out of tax calculations and helps you stay on top of your finances for the 2024/25 tax year.

Questions

Required fields are marked with an asterisk (*)

What kind of landlord are you? *

Buy to let

Room in my home

Monthly rental income * £

Annual salary * £

Any other income * £

Results

Earning from rent

£0

Taxable rental income

£0

Property tax to pay

£0

After tax rental income

£0

Rental income tax rates for 2024/25

For the 2024/25 tax year, rental income is taxed as part of your overall income. The rate at which you pay tax depends on your total income, including rental income and other sources of earnings. Here's an overview of the income tax bands for the 2024/25 tax year:

Personal Allowance: Up to £12,570 – No tax is paid on income up to this amount.
Basic Rate (20%): From £12,571 to £50,270.
Higher Rate (40%): From £50,271 to £150,000.
Additional Rate (45%): Over £150,000.

Any rental income you earn is added to your total income, meaning you’ll pay tax based on your total earnings, including salary, dividends, and other income sources. It’s important to remember that if your total income exceeds your personal allowance, rental income will be taxed accordingly.

What expenses can landlords deduct?

As a landlord, there are various expenses you can deduct from your rental income before calculating your tax liability. These deductions can help reduce the amount of tax you owe. Some common deductible expenses include:

Mortgage Interest: You can deduct the interest on your mortgage for the rental property (not the principal repayments).
Property Repairs & Maintenance: The costs of maintaining and repairing your rental property are deductible. This includes repairs like fixing plumbing issues, replacing a broken appliance, or repainting rooms.
Insurance: You can deduct the cost of building, contents, or landlord insurance.
Letting Agent Fees: If you use a letting agent to manage your property, their fees are deductible.
Utilities & Council Tax: If you pay for utilities or council tax on behalf of tenants, these costs can be deducted.
Professional Fees: Costs for services from accountants, solicitors, or surveyors related to the property.
Depreciation (Wear and Tear): Although the "wear and tear" allowance was abolished, you can still claim for actual replacement costs (such as replacing furniture or appliances).

Our Rental Income Tax Calculator will help make sure all allowable expenses are considered when working out your taxable rental income.

How to report rental income to HMRC

It’s essential to report your rental income to HMRC to ensure that you are meeting your tax responsibilities. As a landlord, you need to report any rental income you earn as part of your self-assessment tax return. Here’s how to do it:

Register for Self-Assessment: If you're not already registered, you’ll need to sign up for self-assessment with HMRC.
Complete Your Tax Return: On your annual tax return, report your total rental income and any deductible expenses.
Pay Your Tax: Once HMRC has calculated how much tax you owe, they will inform you of the amount. Ensure you pay on time to avoid penalties.

Managing your tax returns can be confusing and time-consuming but it doesn’t have to be. Reporting your rental income accurately is vital to avoiding penalties and keeping your records in order, and we can help guide you through the entire self-assessment process. Making sure all your rental income and deductible expenses are reported correctly and on time. Our team of experts is here to support you, so you can focus on what you do best while we handle the paperwork. Plus, if you’re eligible for any tax rebates, we’ll help you claim them too.

Let RIFT take the stress out of your rental income tax. Get in touch with us today, and we’ll make sure your tax return is filed accurately, with everything in order.

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Rental Income Tax Calculator​

Questions

Results

Rental income tax rates for 2024/25

What expenses can landlords deduct?

How to report rental income to HMRC

Tax Calculators

Rental Income Tax Calculator