Many individuals with relatively simple tax affairs are now able to deal directly with Her Majesty's Revenue & Customs (HMRC) by telephone and this can dispense with the need to file an annual tax return.
You can notify HMRC of any changes in personal circumstances by telephone, including changes which may affect any claims to personal allowances you are entitled to and of any changes to your employment or self-employment status. This service can also be used to advise HMRC of any sources of untaxed income where that income will not exceed £2,500 per annum.
Where untaxed income exceeds £2,500, it is necessary for the individual to complete and file a self assessment tax return. As your rental income is £2,600, you should therefore contact your local tax office and ask them to issue a tax return form to you. Before completing your tax return form you should consider seeking advice from an accountant. They will be able to review your circumstances to ensure that you claim any reliefs and deductions available, in order to minimise your liability to tax.