What is rental income?
Definition of rental income
‘Rental income’ is defined as the rent received by landlords from tenants. Any separate payments received for the use of furniture, or for services such as cleaning of communal areas, hot water, heating or repairs to the property, are also defined by HMRC as ‘rental income’.
Landlords must pay tax on any profit they make from receiving rental income.
Further information is available on HMRC’s website.
Managing tax as an unincorporated landlord
If you’re an unincorporated landlord and you’re wondering how to manage your tax obligations, then FreeAgent can help. We’re building a brand new version of our award-winning accounting software that’s designed specifically for unincorporated landlords.
FreeAgent for Landlords will help unincorporated landlords manage their property finances and submit Self Assessment to HMRC from January 2024.
You can find out more about FreeAgent for Landlords and register your interest to be the first to know when it’s ready. Alternatively, you can speak to your accountant about gaining early access to the software.
Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.