As a landlord who has not yet declared rental income, HMRC’s Let Property Campaign can appear to be a time bomb ready to explode. But it doesn’t have to be — if you take prompt action.
This program is meant to offer landlords a chance to come forward voluntarily regarding income that they may not have reported previously. Nevertheless, the majority of house owners are unaware that waiting too long to participate will render the situation much worse in terms of finances as well as legally.
Whether you’ve only recently started renting out a property or have been doing so for years without full disclosure, this is one opportunity that’s best taken sooner rather than later.
What the Campaign Is All About
The HMRC Let Property Campaign focuses on those who owe tax to pay on rental profits from residential property but were not able to declare it. The initiative extends across the board — from the occasional landlord letting a spare room to those running multi-buy-to-let portfolios. If you are in that bracket and have not reported fully, then you need to come forward now.
One of the key advantages of the campaign is that it allows landlords to make disclosures with lighter penalties. Voluntary action generally imposes fines as low as 0% to 20% of the overdue tax, rather than the usual 100% or more for those discovered in investigations.
Why Timing is Crucial
Here’s the thing: HMRC, now more than ever, has the resources at their disposal to spot undeclared rental income. With access to data from letting agents, property websites, the Land Registry, and even local councils, they can now spot anomalies with astonishing precision.
The moment HMRC initially makes contact with you — through a letter, compliance visit, or all-out investigation — the benefits of the Let Property Campaign are lost. You will no longer qualify for the reduced penalties and will even be at risk of prosecution in the most severe cases.
This is why it is always better to do it before HMRC contacts you. Let Property Campaign Voluntary disclosure allows you to be in control and yields a much better outcome.
The Disclosure Process: Not As Painful As You Might Think
Most landlords hesitate with self-disclosure because they are scared of the process being far too complicated. However, the truth is that the disclosure process is far less painful than you might imagine — especially with proper guidance.
Here’s how it typically happens:
- Inform HMRC you want to disclose.
- Organise your figures – this is your rental income, expenses, and tax paid.
- Disclose through the Digital Disclosure Service (DDS).
- Pay what you owe – that is, any tax, interest, and penalties you’ve agreed.
Professional advisers can help ensure that everything is accurate and that all possible allowable expenses are included, which generally reduces the tax due. They can also talk to HMRC for you, so it is that much less stressful.
What Happens If You Wait?
Waiting is a gamble — one which could ultimately cost you significantly more in the long run. If HMRC makes an inquiry into your tax affairs and discover the unreported income themselves, you’ll be fined much more. They could go back 20 years or even more to recover lost tax revenue and will add interest as well.
And then there is the reputation damage to contend with. A landlord who has already had a tax enquiry looming over them might not be able to get credit or attract new tenants — especially if the matter gets out.
And with HMRC’s improved data-matching ability, it’s no longer a matter of whether they’ll find it — but when.
How Professional Help Makes the Difference
UK Property Accountants help landlords throughout the whole process of disclosure under Let Property Campaign. Their team helps landlords with the calculation of the tax payable, makes sure relief and deductions are claimed in the correct way, and arranges the whole communication process with HMRC.
Working with professionals not only ensures compliance but also brings peace of mind. It’s the most secure way to handle a sensitive matter that could otherwise spiral out of control.
Whether you’re disclosing for a single year or tackling a decade’s worth of undeclared income, having a clear strategy — and the right support — changes everything.
Conclusion
The Let Property Campaign is an opportunity — not a fine. But like any opportunity, it has a time limit, especially when HMRC comes down on you hard. The sooner you take up your stance, the more flexibility and leniency will be given.
Don’t wait for that brown envelope from HMRC to come. If you have untaxed rental income, use this chance to get the past behind you and protect your financial future. The earlier you act, the better your outcome will be.
