Last Updated on October 8, 2024 by Kristina Valcheva
If you own a property in the UK but live outside of the country, you will have to file a landlord tax return (UK income tax return) with the HMRC.
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HMRC uses self-assessment to collect income tax outside the PAYE system. In most cases, this tax is deducted automatically from wages, pensions, and savings. But if you earn income outside the PAYE system where tax is not deducted at source, you must report it in a tax return. The same applies if you have a rental income from a property in the UK.
There are two options to consider when filing your UK property tax return.
Firstly, you can file directly yourself with HMRC. But if you would like a hand filing your documents, you can also contact a tax agent – like Property Tax International – PTI Returns – who can help you through the process.
In this guide, we are going to examine why it is so important to file your UK rental property tax return on time and show you how to easily file your documents online.
What are the property tax filing deadlines?
Most people choose to handle their self-assessment online, but you can file a paper property tax return if you prefer.
The tax deadline for filing and paying tax on rental income in the UK is 31 January 2023.
Online self-assessment tax returns must be submitted by 31 January after the end of the tax year (i.e. for 2022, this is 31 January 2023).
Self-assessment tax returns for the previous tax year can be filled out online. However, penalties for late filing will be imposed.
Read more:
Rental Income Tax in the UK – A Guide for Landlords
What if I miss the HMRC self-assessment deadline?
If you don’t file your UK rental income tax return on time, you may incur fines and penalties.
If you are up to three months late, there is a penalty of £100. After three months, the HMRC will impose an additional £10 daily for the next 90 days, increasing the total penalty to £1,000. The fine is imposed automatically, regardless of whether you owe tax or not.
Where the failure is prolonged beyond six or twelve months, there are further penalties of either £300 or 5% of the tax liability on the return (whichever is the greater).
Additional fines for late payment in the UK
| 30 days late | 5% of the tax due |
| 6 months late | A further 5% of tax outstanding |
| 12 months |
A further 5% of tax outstanding |
By knowing your UK tax obligations, you can keep your tax bill regular if you don’t miss the HMRC self-assessment tax return deadline. You can also turn to a property tax advisor, to follow all filing deadlines for you, and also help you claim all possible rental property tax reliefs.
Are all property owners required to file a tax return?
Self-assessed tax returns are not just for the self-employed.
You are required to file a UK rental income tax return if:
- You are a landlord
- You are a commercial rental property owner
- You have £2,500 or more in untaxed income, for example from renting out a property (you need to contact the HMRC if your income was between £1,000 and £2,500)
- You have made a profit from the sale of a property (you have a capital gains tax liability)
Check out also Top Tax Advice for Foreigners who Own Property in the UK
What information will I need to fill in my UK property tax return?
Before you start the process, make sure you have:
- your Unique Taxpayer Reference (UTR)
- your National Insurance number
- P60 or other records showing how much employment income (if any) you received that you’ve already paid tax on.
- details of your untaxed income from the tax year, including income from renting out a property, self-employment, interest, and dividends on shares
- records of any expenses relating to your rental income and/or self-employment income
- any contributions to pensions or charity which might be eligible for tax relief
Who can help me file my UK rental tax return?
At Property Tax International (PTI Returns) our team of tax advisors specializes in international property tax returns for overseas property investors. PTI Returns provides a wide range of UK tax services for investors and property owners. We’re a registered agent with HMRC and have over 25 years of experience.
With our help, you will never miss the deadline, pay too much tax, or find yourself on the wrong side of HMRC.
And the best part? The entire process is online!
Contact the PTI Returns team today for a free, no-obligation quote for your UK property tax requirements.
Learn more about your UK self-assessment