Let property campaign

 If you have undeclared rental income, it is important to take proactive steps to bring your tax affairs up to date. HMRC provides a formal route for landlords to disclose past omissions through its Let Property Campaign, a voluntary disclosure initiative designed specifically for individuals who earn rental income but have not declared it in full. Whether you are a first-time landlord who did not realise you needed to register, or an experienced property owner who has made errors in past tax returns, using this campaign allows you to correct mistakes, minimise penalties, and restore full compliance with HMRC.

What is the Let Property Campaign?

The Let Property Campaign is an ongoing disclosure opportunity launched by HMRC to help individual landlords put their tax records right. It applies to anyone who receives income from residential property in the UK or abroad and has not declared it, or has declared it inaccurately. This includes:

Single property landlords – those renting out one property.

Multiple property landlords – those with a portfolio of rental properties.

Specialist situations – such as renting out a holiday home, letting a room through platforms like Airbnb, or receiving overseas rental income.

It does not apply to companies or trusts, but rather to individual taxpayers.

Why disclosure matters

HMRC receives increasingly detailed information from letting agents, online platforms, and even overseas tax authorities. This means undeclared rental income is more likely than ever to be detected. If HMRC discovers irregularities before you disclose them, you could face significantly higher penalties, interest on unpaid tax, and even the possibility of an investigation. Voluntary disclosure demonstrates cooperation and good faith, leading to reduced penalties and a simpler resolution.

How the disclosure process works

Making a voluntary disclosure through the Let Property Campaign involves three main stages:

Notification – You must inform HMRC of your intention to disclose. This is done online by completing a notification form, after which HMRC will provide you with a Disclosure Reference Number (DRN).

Calculation and preparation – You will need to calculate the rental income you have failed to declare, the correct tax due, and any interest. This can involve reviewing several years’ worth of accounts, rental agreements, bank statements, and allowable expenses. At this stage, it is often helpful to seek professional advice to ensure your figures are accurate and all eligible deductions are claimed.

Submission and payment – Once your disclosure is complete, you submit it to HMRC along with payment of the outstanding tax and interest. HMRC will then confirm receipt and consider the matter settled, provided they are satisfied with your disclosure.

Penalties and reductions

Normally, penalties for failing to disclose income can be up to 100% of the tax owed. However, under the Let Property Campaign, penalties are significantly reduced because you have come forward voluntarily. The exact penalty will depend on factors such as the length of time the income went undeclared, the nature of the error (whether careless or deliberate), and your level of cooperation. In many cases, penalties can be as low as 0–20% of the outstanding tax.

Benefits of using the Let Property Campaign

Let property campaign

Peace of mind: Once disclosure is complete, you can be confident your affairs are in order.

Lower penalties: Voluntary disclosure almost always results in more favourable treatment than waiting for HMRC to contact you.

Avoiding escalation: Disclosure prevents the risk of investigation, which is often more costly and stressful.

Professional guidance: With expert support, you can ensure accuracy and claim all legitimate expenses, reducing the amount owed.

How experts can help

Navigating the disclosure process can be complex, especially if you have multiple properties, overseas income, or several years of undeclared rental earnings. Experienced advisers can guide you through every step — from gathering financial records to preparing accurate calculations, drafting the disclosure, and negotiating with HMRC on your behalf. This ensures the process is efficient and that your tax position is presented in the best possible light.

Taking action now

If you suspect you may have undeclared rental income, it is better to act sooner rather than later. HMRC encourages voluntary disclosure and takes a more lenient approach when taxpayers come forward of their own accord. By using the Let Property Campaign, you can resolve past mistakes, safeguard your financial future, and move forward with full compliance.

In summary, the Let Property Campaign offers landlords a valuable opportunity to correct past tax errors in a structured and fair way. With expert assistance, you can minimise penalties, protect yourself from potential investigations, and ensure your property income is fully compliant with HMRC requirements.