Income Tax, by income source.
Plain-English guides to how each kind of UK income is taxed: rental, dividends, CIS, capital gains, crypto, side hustles and more. Find your income source below.
Tax rules made for each type of income
Income Tax in the UK is not one flat charge: rental, dividends, savings, capital gains and self-employment income each carry their own allowances, rates and reporting rules before HMRC stacks them into your total. A landlord uses the property allowance and the 20% mortgage interest credit; an investor uses the £500 dividend allowance; a side-hustler relies on the £1,000 trading allowance. Each guide below is written for one income source so you only see what applies to you.
Three things to get right with extra income
Know your allowances
Each income type has its own tax-free band: £1,000 trading and property allowances, the £500 dividend allowance, the personal savings allowance, and the £3,000 capital gains exemption. Use each against the right income.
Report the right income
Untaxed income above the relevant allowance must be declared through Self Assessment. Rental, dividends, crypto gains and side income all have specific reporting rules and deadlines.
Get ready for MTD
From April 2026, sole traders and landlords with combined income over £50,000 must keep digital records and send quarterly updates. TapTax keeps the digital records and prepares each quarterly update for you to review and file.
Find your income source
9 guides covering rates, allowances, Self Assessment, and MTD for each kind of income.
Capital Gains Tax
Capital Gains Tax for 2026/27: the £3,000 annual exempt amount, property, shares and crypto rates.
Crypto Tax
UK crypto tax explained: when disposals trigger Capital Gains Tax, income vs capital, the £3,000 CGT allowance, record-keeping.
Rental Income
UK landlord tax guide: the SA105 property pages, the 20% finance-cost credit on mortgage interest, allowable expenses, the £1,000 property allowance.
Dividend Income
How UK dividend income is taxed in 2026/27: the £500 dividend allowance, 10.75/35.75/39.35% rates.
Foreign Income
How UK residents declare foreign income on SA106: arising vs remittance basis, foreign tax credit relief, overseas rent, dividends and pensions.
Side Hustle Income
Side hustle tax in the UK: the £1,000 trading allowance, when to register, combining a job with self-employment.
CIS Subcontractor
CIS subcontractor tax explained: reclaiming 20% and 30% deductions through Self Assessment, refunds, gross payment status, verification.
Holiday Let Tax
Holiday let tax after the April 2025 FHL abolition: what reliefs you lost, finance-cost restriction, SA105, allowable expenses.
Multiple Income Streams
Tax guide for multiple income streams: combining employment and self-employment, the £1,000 trading allowance.
How to use these guides
Pick the income source
Choose the guide that matches the income you need to report. If you have several sources, start with the highest-value one, then read the multiple income streams guide to see how they combine.
Check the allowances and rates
Each guide lists the allowance, the 2025/26 rates, and the deadlines for that income type. Use them to work out what is tax-free and what you owe before you file.
Run the numbers and get MTD-ready
Use the linked calculators to estimate your tax, then let TapTax keep digital records and prepare each quarterly update for you to file with a tap ahead of the April 2026 MTD deadline.
Frequently asked questions
Tax sorted, whatever you earn.
TapTax connects to your bank, categorises income and expenses automatically, and prepares your quarterly updates to file to HMRC in a tap. Free plan, no card required.