Tax & Earnings Guidance
Understanding your tax responsibilities as a plot owner
Last updated: November 2025
Our Commitment to Your Compliance
At Plot-Share UK, we are committed to ensuring clarity regarding your earnings and tax responsibilities when you rent out your land or property through our platform. This guidance outlines the relevant UK tax rules and explains how Plot-Share UK supports your compliance.
1. The UK Tax-Free Property Allowance
The income you generate from renting your plot is classified as property income and is subject to UK Income Tax. However, the government offers a valuable allowance for smaller earners:
The Allowance: The Property Income Allowance permits individuals to earn up to £1,000 from property income, completely tax-free, during each UK tax year (April 6th to April 5th).
| Your Earning Status | HMRC Obligation |
|---|---|
| Below £1,000 | You generally do not need to take any action or declare this income to HMRC. |
| Over £1,000 | You are legally required to report this income to HMRC via a Self Assessment tax return. You will pay tax only on the profit above the allowance (or after deducting allowable expenses). |
2. Our Automated Compliance Notification System
To help you prepare for and manage your tax obligations, Plot-Share UK has implemented a proactive notification system:
| Earning Threshold | Our Automated Action |
|---|---|
| Approaching £1,000 (e.g., £900 - £999.99) |
We will send you an email alert and a dashboard notification serving as a crucial heads-up that you are about to exceed the tax-free limit. |
| Exceeding £1,000 | We will send a mandatory alert explaining that all subsequent income from your plot rentals is potentially subject to Income Tax. |
3. Verification of Your Tax ID (National Insurance Number)
Due to new UK regulations requiring digital platforms to report user earnings to HM Revenue & Customs (HMRC), we are obliged to collect and verify the Tax Identification Number (TIN) of earners on our platform.
Action Upon Notification
Once you receive the notification that you are approaching or have passed the £1,000 threshold, Plot-Share UK will securely prompt you to provide your Tax ID.
UK Resident Tax ID: For plot owners residing in the UK, your Tax Identification Number (TIN) is your National Insurance Number (NIN).
This measure ensures Plot-Share UK can fulfil its legal reporting duties and assists you in maintaining your tax compliance.
4. Important Disclaimer: Your Responsibility
Plot-Share UK is a technology platform, not a tax advisor or accounting firm.
- The information provided here is general guidance and is subject to change by HMRC.
- It remains the sole responsibility of the plot owner to accurately calculate, report, and pay any Income Tax or National Insurance contributions due to HMRC.
If you have any questions about your personal tax situation, allowable expenses, or how to file a Self Assessment return, please seek advice from a qualified accountant or contact HM Revenue & Customs directly.
Need Further Assistance?
For questions about how Plot-Share UK tracks your earnings or our notification system, please contact us at support@plotshareuk.com.
For tax advice, please consult:
- HM Revenue & Customs (HMRC): www.gov.uk/hmrc
- A qualified accountant or tax advisor