For landlords who have undisclosed rental income, the Let Property Campaign offers a structured opportunity to come forward, declare unpaid tax, and settle what’s owed, without facing the highest penalties or criminal proceedings.
Since the campaign began in April 2025, HMRC has recovered around £570 million from residential landlords through voluntary disclosures, with £107 million collected in the 2024/25 tax year alone.
The average disclosure saw landlords repaying almost £13,713 each.
(Read Time: Approx. 5 minutes)
Topics Discussed:
- Who can use the Let Property Campaign and how to notify HMRC
- How to calculate what’s owed and submit a complete disclosure
What the Let Property Campaign is
The Let Property Campaign is an HMRC initiative allowing individual landlords to voluntarily disclose any unpaid tax on rental income, whether the property is in the UK or overseas.
Once you notify HMRC, you have 90 days to submit a full disclosure and pay the outstanding tax.
This campaign only applies to individuals. If the income belongs to a company or trust, or involves non-residential properties such as shops or garages, it is not eligible under this scheme.
Eligible landlords include those:
- Renting out a single or multiple properties
- Letting out a room that exceeds Rent a Room limits
- Operating holiday lets
- Letting out inherited properties
- Non-residents renting UK property
This scheme does not apply if:
- You are letting non‑residential property such as shops, garages, or commercial space
- The income belongs to a company or a trust
Whether the error was due to misunderstanding or deliberate omission, you should notify HMRC now to benefit from the campaign’s terms.
If you’re unsure whether you qualify, you can use HMRC’s dedicated questionnaire.
How to Notify and Disclose
Step 1 – Notify HMRC
You must first inform HMRC of your intention to make a disclosure.
This can be done for yourself, a client, or someone deceased (if you are acting on their behalf).
HMRC will issue you a disclosure reference number (DRN) and a payment reference number.
Each person must make a separate notification. For example, spouses with joint property income need to file independently.
Step 2 – Submit the Disclosure
Once you have your DRN, you have 90 days to:
- Calculate your rental income and allowable expenses
- Work out how much tax is owed
- Include applicable interest and penalties
- Make a formal offer to pay and submit the disclosure
HMRC will only accept the disclosure if both the full disclosure and payment are received within the 90-day window.
If you can’t pay in full by the deadline, you must contact the helpline to arrange a payment plan before submitting your disclosure.
Working Out What You Owe
Income and Expenses
You’ll need to calculate:
- The total rental income per year that wasn’t previously declared
- Allowable expenses (excluding anything already claimed)
- The net taxable profit for each year
Only include years where a tax liability arises.
If you’ve made a loss in a year, you can carry that loss forward but do not include it in your disclosure.
Using the Calculator
HMRC provides an online calculator to help determine:
- Income Tax
- Interest
- Penalties
This tool is suitable for rental income, employment income, and capital gains.
If your affairs are more complex, professional help is advised.
Missing Records
If you don’t have all the necessary records, make a best estimate and retain calculations for reference.
Bank statements can help reconstruct missing information.
Years to Include in Your Disclosure
How many years of unpaid tax you must disclose depends on why the error occurred:
- Reasonable care taken: up to 4 years
- Careless errors: up to 6 years
- Deliberate evasion: up to 20 years
If you failed to register for Self-Assessment or declare income by 5 October following the tax year, this may trigger a 20-year disclosure window.
Penalties and Interest
Interest
Interest is calculated from the date the tax was due until payment is made. It must be included in your disclosure.
Penalties
Penalties vary based on behaviour:
- Up to 100% of unpaid tax for UK income
- Up to 200% for offshore income
Voluntary disclosure typically reduces the penalty, especially if you co-operate fully.
You must calculate and propose the penalty yourself as part of your submission.
If HMRC disagrees with your figures, your disclosure may be rejected.
Completing the Declaration and Offer
Your disclosure must include:
- A declaration that your information is complete and correct
- An offer to pay all liabilities in full
If accepted, this creates a legally binding agreement between you and HMRC.
After You Disclose
If your disclosure is accepted, HMRC will send confirmation.
They may contact you for clarification or additional information, particularly if something appears incomplete.
Inaccurate or deliberately misleading disclosures may result in higher penalties or a criminal investigation.
Maintaining clear records is essential to demonstrate the primary purpose of the expenditure.
Disclosures may be rejected if:
- You’re already under investigation
- The disclosure is materially incorrect
- The money involved is linked to organised crime
Keeping Compliant in Future
After disclosure, HMRC expects you to stay compliant going forward.
Ensure all tax returns are accurate and filed on time.
HMRC may monitor for ongoing compliance and reassess if they receive new information.
Additional Liabilities
As part of your disclosure, you must include all undeclared income, not just rental.
This might include:
- Self-employment income
- Investment income
- Capital gains
- Other taxes such as VAT or Inheritance Tax (indicate in your disclosure if applicable)
Summary
The Let Property Campaign offers landlords a valuable opportunity to bring their tax affairs up to date while avoiding the most severe penalties.
If you’ve made errors (accidental or otherwise) this is a structured, time-limited way to disclose them.
It’s important to act quickly and carefully, and if needed, seek professional advice.
If you’re unsure about your eligibility or how to calculate what you owe, we can help.
Get in touch with us for assistance with making a full and accurate disclosure.
Fill out our form here for any questions, email us at info@taxexpert.co.uk, or message us on our WhatsApp for out of office hours.
Kind regards,
Ilyas Patel
