What landlords need to know about HMRC’s Let Property Campaign 

As a landlord, keeping up with tax responsibilities can sometimes be overwhelming, especially if you are managing multiple properties or dealing with income from overseas rentals.  

Fortunately, HM Revenue & Customs (HMRC) offers the Let Property Campaign, a helpful initiative that lets landlords bring their tax records up to date and avoid hefty penalties. 

With the Self Assessment deadline just around the corner, now is the perfect time to ensure your tax affairs are in good order. 

Understanding the Let Property Campaign 

The Let Property Campaign is specifically designed for landlords who may have undeclared rental income, whether from UK properties or abroad.  

It provides a straightforward way to notify HMRC, settle unpaid tax, and secure a more favourable penalty than you would likely face if HMRC discovered discrepancies on its own.  

The key benefit? If you declare voluntarily, penalties are reduced, and HMRC won’t label you as a deliberate defaulter, which could impact your financial reputation. 

Once you notify HMRC of your intent to disclose, you will have a 90-day window to calculate and settle any outstanding tax.  

Failing to disclose can lead to much harsher penalties and in some cases, even prosecution, so taking proactive steps can really pay off. 

Who should consider a disclosure? 

The Let Property Campaign covers a range of rental arrangements, including: 

• Letting out one or more residential properties 

• Renting out a room that exceeds the Rent a Room Scheme’s tax-free threshold 

• Earning income from holiday rentals 

• Renting out property while living abroad for over six months 

• Letting an inherited property 

This campaign doesn’t apply to commercial properties, like shops or storage units, or any income declared through a company or trust. 

Steps for disclosing Your rental income 

If you suspect you may owe tax on rental income, here’s how the process works: 

1. Notify HMRC: First, you’ll need to inform HMRC that you intend to make a disclosure. They will issue you a unique reference number. 
2. Calculate your liability: You’ll then have 90 days to calculate the amount owed, including any allowable expenses. 
3. Pay what you owe: Submit your payment, along with a detailed breakdown of rental income and expenses. 

Having accurate records for each tax year is essential, as HMRC will want a clear picture of your finances.  

If record-keeping has been a challenge, we can help you keep on track with these details.  

Getting it right first time will improve the likelihood of HMRC accepting your disclosure without question. 

If you are unsure about the Self Assessment steps or need assistance with calculations, our team is here to help. Contact us today.