If you’ve been earning rental income but haven’t told HMRC about it, don’t panic — you’re not the only one. Whether you didn’t realise you had to declare it, or things simply got away from you, there’s a way to put things right without facing harsh penalties. That’s where the HMRC Let Property Campaign comes in.
This initiative from HMRC is aimed at landlords who haven’t been fully up to date with their tax affairs. It gives you a chance to come forward, make a full disclosure, and settle what you owe — often with much lower penalties than if HMRC had to chase you.
How the Campaign Works
The process isn’t as intimidating as you might think. Here’s how it works in simple terms:
- Let HMRC Know You Want to Disclose
Start by telling HMRC you’d like to make a disclosure. This is done through their Digital Disclosure Service. - Work Out What You Owe
Gather your figures. You’ll need to total up your rental income for each tax year you’ve missed, minus any allowable expenses (like letting agent fees, repairs, insurance, and mortgage interest — depending on the year). - Submit Your Disclosure
Once you’ve told HMRC you’re taking part, you’ll get 90 days to make your full disclosure and pay what you owe, including any interest and agreed penalties. - Pay and Move On
Once the payment’s made and HMRC accepts your disclosure, that’s usually the end of it — provided everything was complete and accurate.
A Few Things to Watch Out For
- Don’t wait too long – if HMRC contacts you first, the chance to use the campaign vanishes.
- Be honest and complete – leaving anything out, even unintentionally, could cause problems.
- Stick to the deadline – 90 days sounds like a lot, but it goes quickly. Don’t leave it to the last minute.
What If You Can’t Pay Everything at Once?
HMRC is usually open to reasonable payment plans if you’re upfront. It’s far better to disclose what you owe and agree a plan than to avoid the issue altogether.
Conclusion
Sorting out unpaid tax isn’t anyone’s idea of fun — but the HMRC Let Property Campaign makes it a lot less painful than it could be. If you’ve let a property and haven’t declared all the income, this is your chance to set things straight on your own terms.
It’s not about being perfect — it’s about taking the right step now before HMRC takes it for you. And once it’s done, you can relax knowing your rental affairs are in order.
