A Complete Guide to Let Property Campaign

How to Disclose Rental Income to HMRC Through the Let Property Campaign

If you’ve earned rental income from a property and haven’t declared it to HMRC—whether it was an honest oversight or something you’ve been meaning to sort HMRC’s Let Property Campaign gives you a chance to make things right. The good news? Acting now could reduce the penalties you face and help you avoid a potentially stressful investigation later.

At UK Landlord Tax, we help landlords every day to resolve situations just like this. Whether you’ve rented out one property or a small portfolio, this guide walks you through how to disclose your rental income correctly and how we can help make the process simple and stress-free.

What Is the Let Property Campaign?

The Let Property Campaign (LPC) is an ongoing HMRC initiative aimed at individual landlords who have underpaid tax on their rental income.

It’s specifically for people who’ve let out residential property without fully declaring the income—either unintentionally or otherwise. Rather than waiting to be caught out, landlords can use this campaign to voluntarily come forward, disclose any unpaid tax, and often benefit from reduced penalties as a result.

Who Should Use the Campaign?

If you’ve ever rented out a residential property in the UK and think you might not have declared all your rental income, this campaign is likely for you.

You’re eligible if you’ve:

• Let out a single buy-to-let property
• Rented out a property you inherited
• Moved out and let your former home
• Let a holiday home or Airbnb-style rental
• Let a property to family or friends at a discount
• Rented out a UK property while living overseas
• Earned more than £1,000 in rental income in a tax year and didn’t declare it

Note: This campaign is for individuals—not companies or trusts. If that’s your situation, we can advise you on the best course of action.

Do I Need to Declare My Rental Income?

This is a question we hear all the time—and it’s not always straightforward. Here are the basic thresholds to be aware of:

• Less than £1,000 rental income per year?
  You may fall under the “property allowance” and not need to register or declare.
• Between £1,000 and £2,500 per year?
  You should contact HMRC to confirm whether you need to declare it.
• More than £2,500 per year?
  You will almost certainly need to register for Self Assessment and declare your rental income.

If you’re unsure where you fall, we can help you work it out.

How the Disclosure Process Works

Using the Let Property Campaign is more straightforward than many landlords expect. Here’s how it works, step by step:

1. Notify HMRC

You must formally notify HMRC that you want to make a disclosure. This is done online through HMRC’s Digital Disclosure Service. Once you notify them, you’ll have 90 days to submit your full disclosure.

2. Gather Your Figures

During this time, you’ll need to calculate:

• Your total rental income
• Allowable expenses (repairs, letting fees, mortgage interest, etc.)
• Tax owed for each relevant year
• Any interest that’s accrued

This can be backdated up to 20 years in some cases—but not everyone needs to go back that far.

3. Submit Your Disclosure

Once you’ve calculated everything, you’ll send the full disclosure to HMRC—along with a payment or a request for a payment plan.

4. Pay What You Owe

If you can’t pay in full straight away, HMRC will usually accept reasonable payment plans. The important thing is to be transparent and proactive.

5. Wait for HMRC’s Response

In most cases, HMRC will accept your disclosure without any further questions—especially if it’s complete and accurate.

What Penalties Might You Face?

One of the biggest benefits of using the Let Property Campaign is the reduced penalties. If you come forward voluntarily, HMRC is likely to be far more lenient.

Here’s what to expect:

• Careless mistakes: Penalties can be as low as 10% of the tax owed.
• Deliberate non-disclosure: Penalties could rise to 35%, but still less than if you wait to be found out.
• If HMRC contacts you first: Penalties can be up to 100%, and in rare cases, you could even face criminal charges.

Coming forward through the LPC is by far the safer and more affordable route.

What Happens If You Don’t Disclose?

HMRC is actively identifying landlords who haven’t declared rental income. They use a system called Connect, which cross-references data from:

• The Land Registry
• Letting agents
• Council tax records
• Mortgage applications
• Online letting listings (e.g. Rightmove, Airbnb)

If there’s a mismatch between what HMRC knows and what you’ve declared, you could be flagged for investigation. Once that happens, the opportunity to use the LPC and benefit from reduced penalties disappears.

How Far Back Do You Need to Go?

This depends on the nature of the omission:

• Up to 4 years for simple mistakes
• Up to 6 years if the error was careless
• Up to 20 years if HMRC believes the omission was deliberate

We’ll help you determine how far back you need to go—and ensure you don’t include more than is necessary.

Can You Pay in Instalments?

Yes. HMRC understands that paying everything upfront isn’t always possible.

If needed, we’ll help you put forward a realistic payment plan as part of your disclosure. Being upfront and showing willingness to pay usually results in a more flexible arrangement.

How UK Landlord Tax Can Help

We’ve helped hundreds of landlords through the Let Property Campaign, from first-time buy-to-let owners to accidental landlords and overseas investors.

Here’s how we can support you:

• Clarity on whether you need to disclose
  We’ll assess your situation and advise if you qualify.
• Accurate tax calculations
  We’ll help calculate rental income, expenses, interest, and tax due.
• Professional submission to HMRC
  We’ll complete and submit the disclosure for you.
• Negotiation of payment plans if needed
  We’ll speak to HMRC on your behalf to arrange terms
• Support throughout the process
  We’re here to answer questions, handle queries from HMRC, and give you peace of mind.

And we don’t just help you fix the past—we’ll also get you set up properly for the future.

Thandi Nicholls Ltd
Creative Industries Centre
Glaisher Drive
Wolverhampton
West Midlands
WV10 9TG