If you owe tax on your letting income you’ll need to tell HM Revenue and Customs (HMRC) about the income you haven’t declared by making a voluntary disclosure.
To get the best possible terms, you must tell HMRC that you wish to take part. You’ll then have 90 days to calculate and pay what you owe.
Who can do this
You can report previously undisclosed taxes on rental income to HMRC under the Let Property Campaign if you’re an individual landlord renting out residential property.
This includes you if you’re:
- renting out a single property
- renting out multiple properties
- a specialist landlord, eg student or workforce rentals
- renting out a room in your main home for more than the Rent a Room Scheme threshold
- living abroad and renting out a property in the UK
- living in the UK and renting a property abroad
- renting out a holiday home even if you use it yourself
You can’t use this scheme to declare undisclosed income if you’re a company or a trust renting out residential property or if you’re renting out commercial property.
If you aren’t sure whether you need to disclose unpaid taxes under this campaign you can use this questionnaire to help you make the right decision about the action you need to take. You’ll answer a few simple questions and get guidance on what you need to do that is specific to your circumstances.
There are many reasons why landlords may misunderstand the rules and so not pay the right amount of tax. Read examples of tax errors landlords make to see if you’ve misunderstood the rules. Whether your errors were due to misunderstanding the rules or you deliberately avoided paying the right amount, you should notify HMRC now rather than wait until they uncover the errors.
If you should disclose but choose not to
HMRC is targeting tax evasion by residential landlords. They’ll use information they have about property rental in the UK and abroad and other information they hold on customers to identify people who might not have paid what they owe.
If you don’t make a voluntary disclosure now and HMRC finds out later, you could get higher penalties or face criminal prosecution.
How to disclose your income
You can use a calculator to help you work out what you owe. There’s a different calculator if you need to tell us about more than 7 years of unpaid tax.
If you need more time to pay, you must call the helpline before your 90-day deadline.
Help and advice
- use HMRC’s letting a property e-learning course, which includes information on different types of property income, how they’re taxed, key dates, record keeping and expenses
- read Income tax when you rent out a property for more information and examples
- view HMRC webinars for more guidance on property income, registering for Self Assessment, HMRC Digital Services and more
- read more about how to make a voluntary disclosure
- watch a video about HMRC campaigns
Call the Let Property Campaign helpline if you need advice.