The Let Property Campaign: how to tell HMRC about unreported rental income

What the campaign is, and who it's for

HMRC runs the campaign for individual landlords with rental income that should have been declared but wasn't. It covers:

• One property or several, in the UK or overseas
• Holiday lets, and a room let above the Rent a Room limit
• UK property let by someone living abroad
• Inherited property that's being let

It doesn't cover non-residential property such as shops or garages, or disclosures on behalf of a company or trust. Each person makes their own disclosure, and an agent or personal representative can notify HMRC for someone else.

How it works

1. Check you're eligible. HMRC has a short online questionnaire for this.
2. Notify HMRC that you intend to disclose, as soon as you know tax is owed. You don't need figures at this stage.
3. HMRC replies with a disclosure reference number and a payment reference number.
4. Work out what you owe for each year: the rental income less allowable expenses, leaving out anything already reported. You can use estimates if records are missing.
5. Disclose and pay within 90 days of the date on HMRC's acknowledgement. If you can't pay in full, call the helpline before the deadline.

The disclosure form includes your own penalty calculation, which acts as an offer. If HMRC accepts it, it becomes a legally binding agreement.

How many years does it cover?

It depends on why the tax wasn't paid:

HMRC expects most people to be within about six years. Income you've already reported is left out.

Penalties

A penalty is a percentage of the extra tax owed. The range depends on the reason, and whether you came forward before HMRC contacted you (unprompted) or after (prompted). The figures below are HMRC's ranges for inaccurate returns.

Where you didn't tell HMRC about the income at all, the ranges are similar, and an unprompted non-deliberate disclosure can start at 0% if it's within 12 months of the tax being due.

How cooperation reduces the penalty

• Telling HMRC everything promptly: up to 30% off the range.
• Helping HMRC work it out: up to 40%.
• Giving access to records: up to 30%.

The reductions work on the gap between the minimum and maximum of the range. HMRC says it's unlikely to reduce a penalty by more than 10 percentage points above the minimum where the delay has been about three years or more.

An illustration, with made-up figures: if £10,000 of tax was unpaid because of carelessness and you came forward unprompted, the penalty range is £0 to £3,000, and the quality of your disclosure decides where in that range you land. Interest is on top of that.

Interest

Interest is charged on the unpaid tax from the date it was due until it's paid, calculated daily. A disclosure that doesn't include the correct interest can be rejected as incomplete. HMRC provides a calculator for tax, interest and penalties, but you need to work out the tax for each year first.

If HMRC has already contacted you

If HMRC has already told you it's opening an enquiry or compliance check, a Let Property Campaign disclosure is unlikely to be accepted. Tell the officer dealing with the enquiry instead. Telling them everything early and fully still counts when they work out the penalty.

What happens if you don't come forward

HMRC says that if you don't disclose and it finds out later, you could face higher penalties, or in serious cases a criminal investigation. It can't promise immunity from prosecution, but a complete, voluntary disclosure is one thing it takes into account. For most landlords with an honest mistake, the aim is simply to put it right.

Moving on after a disclosure

Once you've disclosed, make sure your rental income is reported through Self Assessment each year, with your records kept. Use the tax calculator to see what a year of rental income costs in tax, and the allowable expenses guide to claim everything you're entitled to. From April 2026 some landlords also have to follow Making Tax Digital.

Common questions