What Counts as Income for Self Assessment

If you’re unsure what counts as income for Self Assessment, this guide will help you understand what you need to report to HMRC.

Here’s what you should include in your tax return to stay compliant and avoid penalties.

1. What Counts as Self-Employment Income

This includes money earned from:

Freelancing
Contracting
Running your own business
A partnership

Report your total income and there me be allowable expenses you can claim to reduce your tax bill.

2. Rental Income You Must Report on Your Self Assessment

If you let out property (even a room in your home), this counts as taxable income.

You may be able to deduct allowable expenses and relief from this

3. Dividend and Investment Income

This includes:

UK and overseas dividends
Interest on savings (unless in an ISA)
Investment trust income

Even small amounts must be reported if you go over the allowance.

4. Capital Gains

Sold shares or property (that’s not your main home)?

You may need to report gains above the annual exemption.

5. Foreign Income

If you live in the UK but earn money abroad, it may need to be declared—especially if it’s not taxed overseas.

6. Other Income to Include in Self Assessment

Other examples include:

Tips and commissions
Income from side hustles
Pensions (excluding State Pension in some cases)

Need Help with what counts as income for Self Assessment?

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