How to Disclose Rental Income to HMRC

HMRC’s Let Property Campaign: What Every UK Landlord Needs to Know

If you’ve earned rental income that hasn’t been declared to HMRC—whether through oversight, confusion, or circumstance you’re not alone. Thousands of landlords have found themselves in the same boat. The good news? HMRC’s Let Property Campaign (LPC) gives you the chance to come clean, get your tax affairs in order, and potentially avoid harsh penalties.

At UK Landlord Tax, we specialise in helping landlords just like you navigate disclosures like this with confidence and clarity. Let’s break down what this campaign is all about, why it matters, and how we can help.

What Is the Let Property Campaign?

The Let Property Campaign is a HMRC initiative aimed at individuals who’ve let out residential property in the UK but haven’t declared some or all of the rental income.

Whether you own one buy-to-let, inherited a property and rented it out, or have a whole portfolio, the campaign offers a structured way to disclose underpaid tax. The key benefit? If you come forward voluntarily, HMRC is likely to treat you more favourably than if they contact you first.

Who Is It For?

You can use the campaign if you’re an individual landlord (not a company) who has:

• Let out a single property or a portfolio
• Rented out a former home
• Let a holiday home
• Rented out a room (beyond the Rent a Room Scheme threshold)
• Lived overseas while renting out UK property
• Let a property to family or friends at below-market rent

It doesn’t apply to companies or trusts, but we can help you understand other routes if that’s your situation.

Why Might Landlords Fall Behind on Tax?

We speak to landlords every day—and many simply didn’t realise they needed to declare their rental income. Here are some of the most common scenarios:

• Inherited property: You inherited a house and started renting it out, assuming it was outside tax rules.
• Accidental landlord: You moved in with a partner or relocated and kept your old property to let.
• Assumed it was covered: You thought your letting agent was handling all the tax side of things.
• Low income: You assumed the rental income wasn’t high enough to declare.
• You live overseas: Non-resident landlords often get caught out due to unfamiliarity with UK tax rules.

Whatever your reason, what matters most is taking action now before HMRC finds you first.

How HMRC Finds Undeclared Rental Income

It’s a common misconception that HMRC won’t notice smaller landlords. In reality, they use a powerful data-matching system called Connect, which pulls data from:

• Land Registry (property purchases and sales)
• Letting agents
• Council tax and utility accounts
• Mortgage applications
• Online property listings (Rightmove, Zoopla, Airbnb)

If there’s a mismatch between your tax return and what they know, you may be at risk of investigation—especially with their recent focus on the private rental sector.

What Happens If You Use the Campaign?

Here’s how the process works, step by step:

1. Tell HMRC you want to disclose

You must formally notify HMRC of your intention to use the campaign. This starts the clock—giving you 90 days to prepare your disclosure.

2. Gather your figures

You’ll need to calculate your undeclared rental income and allowable expenses going back as far as necessary.

3. Make your disclosure

Submit a full breakdown of your income, expenses, tax owed, and interest. You’ll also include a payment or request a payment plan.

4. Wait for HMRC to acknowledge

Assuming all is in order, HMRC will usually accept your disclosure without further questions. If anything is missing, they may get in touch.

What About Penalties?

If you disclose voluntarily, penalties are significantly lower—often as little as 10–20% of the tax owed, compared to up to 100% (or even criminal investigation) if HMRC finds you first.

The exact penalty depends on your behaviour:

• Careless (you made a mistake): lower penalties
• Deliberate (you knowingly didn’t declare): higher penalties

We’ll work with you to present your case accurately and fairly.

How Far Back Do I Need to Go?

HMRC can go back:

• Up to 4 years for simple mistakes
• Up to 6 years for careless errors
• Up to 20 years for deliberate behaviour

We’ll advise on how many years to include based on your specific situation, and ensure you’re not disclosing more than you legally need to.

Can You Pay in Instalments?

Yes. If you can’t afford to pay everything at once, HMRC is open to reasonable payment plans—as long as you’re upfront. We’ll help you request terms that suit your finances.

How UK Landlord Tax Can Help

We’ve helped hundreds of landlords through the Let Property Campaign. Whether you’ve let out one flat or a whole portfolio, we make the process simple.

Here’s what you can expect from us:

• Clear advice on what you need to disclose
• Accurate tax calculations
• Professional submission to HMRC
• Support dealing with penalties or payment plans
• Peace of mind that you’ve handled it correctly

We’re not just accountants—we’re landlords too. That means we know the challenges you face and how to protect your interests while staying on the right side of HMRC.

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