If you are a landlord, now is the time to double-check your tax affairs. HMRC has recovered a record £107 million in unpaid landlord taxes during 2024/25, the highest figure since the Let Property Campaign began.
The message is clear: HMRC is watching rental income more closely than ever. The Let Property Campaign (LPC) gives landlords a chance to come forward voluntarily and put things right before a formal investigation begins. Acting early could mean smaller penalties and far less stress later on!
What is the Let Property Campaign
The Let Property Campaign is HMRC’s way of helping landlords put their tax affairs in order. If you discover that some rental income has not been declared, even by mistake, you can use HMRC’s online disclosure tool to correct it.
Once registered, you have 90 days to submit all the details and pay what you owe. Landlords who come forward voluntarily are usually treated much more leniently than those contacted first. Read More on GOV.UK: Let Property Campaign Guide
Why This Matters Now
HMRC’s technology is more advanced
- The tax office now cross-checks data from mortgage lenders, letting agents, deposit schemes and short-let platforms like Airbnb. It is becoming increasingly difficult to overlook or hide undeclared income, even unintentionally!
Penalties can be costly
- If undeclared income is found, fines can reach up to 100 percent of the tax owed, or even higher in offshore cases.
Warning letters are already being sent
- Many landlords have received “nudge letters”, polite but serious reminders to review their tax position. Once HMRC makes contact, you lose access to the reduced-penalty route.
What Should Landlords Do
- Review your records and make sure all rental income has been declared, including from short lets and shared tenancies.
- Use HMRC’s online tool to check whether you need to make a disclosure.
- Act before you are contacted as voluntary disclosure almost always leads to lighter penalties.
- Seek professional guidance from an accountant or property expert if you are unsure.
How Agents Can Help
Letting agents play an important part in keeping clients informed. Simple actions such as providing accurate rent summaries, highlighting tax deadlines or encouraging landlords to review their income can make a big difference. A small reminder today can prevent a costly mistake tomorrow.
Final Thoughts
The Let Property Campaign is not about punishment. It is about giving landlords a fair opportunity to stay compliant. With HMRC tightening its systems and issuing more compliance letters, taking action early is the safest choice.
If you are unsure about your tax position, review it now, seek advice and act before HMRC does.
Interlet remains committed to keeping landlords informed on key compliance updates across the London lettings market.
