Self Assessment rent receipts

When you must register

If your gross rental income is more than £1,000 in a tax year, you must register for Self Assessment and declare the income on the SA105 supplementary pages. The £1,000 property allowance covers casual landlords — if your income is at or below it, no return is needed and the income is automatically tax-free.

Rent-a-Room Relief

If you let furnished accommodation in your only or main home, the first £7,500 of gross income each year is tax-free under Rent-a-Room Relief, set by Part 7, Chapter 1 of the Income Tax (Trading and Other Income) Act 2005. It is automatic below the threshold, so you don’t need to tell HMRC anything if your income stays under £7,500. The threshold halves to £3,750 each where two people share the income, such as joint owners.

Above £7,500 you choose each tax year between two bases: the default basis (tax on the income above £7,500 only, no expenses) or the alternate basis (taxed as normal property income with allowable expenses, declared on the SA105 pages). Run both numbers and pick the lower. HMRC’s HS223 helpsheet covers the alternate-basis calculation. Even when no tax is due, HMRC can ask you to show the income falls within the relief, so monthly rent receipts are the cleanest evidence to keep.

Record-keeping rules

You must keep your rental records for at least 5 years after the 31 January submission deadline of the tax year they relate to. That means rent receipts, expense receipts, mortgage statements, council-tax bills, repair invoices, and any communications about the property. HMRC can issue penalties for inadequate records — even if no extra tax is due.

Making Tax Digital for Income Tax

From April 2026, sole traders and landlords with combined business and property income above £50,000 must use HMRC-recognised MTD-compatible software. Records have to be kept digitally and quarterly updates submitted. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. payslipmaker.uk produces MTD-suitable rent receipts as PDF documents — but it does not file returns or store records, so you’ll still need MTD software for submission.

Allowable expenses

Common deductions include letting agent fees, repair and maintenance, insurance, accountancy, ground rent, service charges, and legal fees for shorter leases. Mortgage interest is no longer deductible at the marginal rate for most landlords — instead you receive a 20% basic-rate tax credit on it. Keep receipts for everything; HMRC’s position is that an undocumented expense is a disallowed expense.