The Let Property Campaign is an HMRC initiative offering individual landlords the opportunity to disclose previously undeclared rental income. It is specifically aimed at those letting residential property in their own name, rather than through a company or trust.
This disclosure facility allows taxpayers to come forward voluntarily, correct their tax affairs, and benefit from lower penalties than might otherwise apply if HMRC were to open an enquiry.
Why Act Now?
HMRC has made it clear that tackling undeclared rental income remains a priority. In the Spring Budget 2024, the government announced increased funding to expand HMRC’s compliance activity — with a specific focus on landlords and individuals generating income through digital platforms.
Furthermore, the upcoming introduction of Making Tax Digital for Income Tax from April 2026 will significantly increase the level of digital reporting required by landlords with income over £50,000, extending to those with income over £30,000 from April 2027. With more frequent data submissions and increasing third-party information sharing (from letting agents, online platforms, and mortgage lenders), it will become increasingly difficult for undeclared income to go unnoticed.
Making a voluntary disclosure now, before any contact is received from HMRC, helps reduce the potential for higher penalties and more formal investigation procedures.
What Does the Campaign Involve?
The Let Property Campaign allows eligible landlords to:
Notify HMRC of their intention to disclose,
Calculate and report the rental income that should have been declared,
Pay any outstanding tax, interest, and applicable penalties.
In most cases, HMRC allows a 90-day window following notification to prepare and submit the disclosure. The number of years to include in a disclosure depends on how long the rental income has gone unreported. Individuals are expected to disclose all years where income was omitted, regardless of how far back this goes.
Who Should Consider a Disclosure?
You may wish to consider making a disclosure if:
You’ve let out a property in your own name and haven’t reported the rental income,
You previously lived in a property that has since been rented out,
You’ve earned income from a holiday let that hasn’t been included in your tax return,
You have income exceeding the Rent a Room Scheme threshold which hasn’t been declared.
Even if you are unsure whether a disclosure is needed, it is worth reviewing your position.
Final Thoughts
The Let Property Campaign offers a valuable opportunity to bring undeclared rental income up to date on a voluntary basis. Taking action before HMRC initiates contact can significantly reduce the potential tax exposure, penalties, and administrative burden associated with a formal enquiry.
If you believe you may need to make a disclosure and would like support reviewing your position, please don’t hesitate to get in touch.
01249 816 810
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