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Income Tax guides2026/27

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.

  • MTD-compatible
  • 2026/27 rates
  • Self Assessment ready
  • Free to use
9income sources
31 Janfiling deadline

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

  • 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

  1. 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.

  2. Check the allowances and rates

    Each guide lists the allowance, the 2026/27 rates, and the deadlines for that income type. Use them to work out what is tax-free and what you owe before you file.

  3. 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

How is Income Tax worked out in the UK?

HMRC adds together all your taxable income from every source, applies your Personal Allowance (£12,570 for 2026/27), and then taxes the remainder at the basic (20%), higher (40%) and additional (45%) rates. Some income types, such as dividends and savings, have their own allowances and rates before they are stacked on top.

Does the tax I pay depend on where my income comes from?

Yes. Rental, dividend, savings, capital gains and self-employment income each have their own allowances, rates and reporting rules. For example, dividends use the £500 dividend allowance and lower dividend rates, while capital gains use a separate £3,000 annual exempt amount. Each guide below covers the rules for one income source.

When do I have to report income to HMRC?

You usually report extra income through Self Assessment if it exceeds the relevant allowance, such as £1,000 of trading or property income, £500 of dividends, or any untaxed savings interest above your allowances. The deadline to file online and pay is 31 January after the tax year ends.

How much can I earn before paying Income Tax?

For 2026/27 the Personal Allowance is £12,570, so no Income Tax is due until your total taxable income exceeds it. The allowance is reduced by £1 for every £2 of income above £100,000 and disappears entirely at £125,140.

Which income tax guide applies to me?

Pick the guide that matches the income you need to report, from rental and dividends to crypto, capital gains, side hustles and foreign income. Many people use several at once, in which case the multiple income streams guide explains how HMRC combines them.

Where these figures come from

Rates from GOV.UK.