24. August 2026

Let Property Campaign Explained: What Landlords Need to Know

Article written by PR Accountants LTD in the category Property

Last updated: August 2026

Undeclared rental income should not be left unresolved

Rental income can go undeclared for many reasons.

Some people become landlords unexpectedly after inheriting a property, moving in with a partner, relocating for work or moving into care. Others assume there is no tax to report because the rent only covers the mortgage, a letting agent manages the property or the property makes little cash after loan repayments.

These assumptions can be costly.

Tax is normally based on the taxable profit calculated under the property income rules. It is not based simply on:

The amount left in the bank account
Whether the rent covers the full mortgage payment
Whether a managing agent retains some of the rent
Whether the landlord describes the activity as an investment
Whether the property was inherited rather than purchased
Whether the landlord lives outside the UK
Whether the income was received through an online platform

Where rental income or another related liability has not been reported correctly, the position should be reviewed promptly.

HM Revenue & Customs has a specific disclosure route for many individual residential landlords. This is known as the Let Property Campaign.

Using the campaign does not mean that the tax disappears. The landlord may need to pay:

The unpaid Income Tax or Capital Gains Tax
Late-payment interest
A tax-geared penalty
Other liabilities identified during the review

However, making a complete voluntary disclosure will normally put the landlord in a better position than waiting for HMRC to discover the omission. HMRC states that penalties will usually be lower where a voluntary disclosure is made.

What is the Let Property Campaign?

The Let Property Campaign is an HMRC disclosure opportunity for individual landlords who owe tax because they have let residential property in the UK or abroad.

It allows a landlord to:

Notify HMRC that a disclosure will be made
Reconstruct the rental figures for the relevant tax years
Calculate the additional tax
Calculate interest and any applicable penalties
Make a formal offer to settle the full liability
Pay the amount due or agree payment arrangements with HMRC
Bring future tax reporting up to date

The current HMRC Let Property Campaign guidance provides the formal rules and process.

The campaign is not a tax amnesty. It is a controlled route for correcting tax affairs before the position becomes more serious.

Who can use the Let Property Campaign?

The campaign is intended for individual landlords with previously undisclosed tax relating to residential property.

HMRC lists situations including:

Renting out one residential property
Renting out several residential properties
Letting a room in the landlord's main home where the income exceeds the relevant Rent a Room relief
Operating holiday accommodation
Living abroad and renting out a UK residential property
Inheriting a residential property and then letting it
Receiving income from residential property outside the UK

The landlord may be a professional property investor or someone who does not think of themselves as a landlord.

For example, a disclosure may be needed where someone:

Moved into their partner's home and let their previous home
Relocated for work and rented out their house temporarily
Bought a property for a child at university and let rooms to other students
Moved into residential care and rented out their former home
Kept an inherited property and appointed a letting agent
Used Airbnb or another platform for short-term accommodation
Received their share of rent from a jointly owned property but did not report it
Moved overseas and continued receiving rent from a UK property

HMRC's examples of tax errors landlords make show how ordinary changes in personal circumstances can create a reporting obligation.

Who cannot use the campaign?

The Let Property Campaign is not the correct route for every disclosure.

HMRC states that it does not cover:

A landlord whose only property letting is non-residential, such as a shop, garage or lock-up
A disclosure made on behalf of a company
A disclosure made on behalf of a trust

Companies, trustees and people with disclosures outside the campaign's scope may still be able to use HMRC's general Digital Disclosure Service, but the correct route should be confirmed before notification.

The campaign is also unlikely to be accepted where:

HMRC notified the landlord of an enquiry or compliance check before the landlord notified an intention to disclose
The disclosure is materially incomplete or incorrect
The funds arise from serious organised crime or wider criminality

Where an enquiry has already started, the landlord should disclose the issue to the HMRC officer conducting the enquiry. They should not attempt to use the campaign to bypass that process.

Serious cases involving suspected tax fraud may require specialist legal and tax advice before any statement is made. The campaign does not provide immunity from prosecution.

Do you need the campaign if no tax is due?

Not every omitted rental receipt creates unpaid tax.

There may be no additional tax where, for example:

The landlord's share of gross property income was covered by the property allowance
Allowable expenses produced an overall property loss
The landlord had sufficient unused Personal Allowance
Tax was already deducted under the Non-resident Landlords Scheme and fully covers the liability
A valid relief applies

This should be established through a proper calculation rather than assumed.

The property allowance is currently up to £1,000 of qualifying gross property income for an individual. It has applied since 2017/18, subject to exclusions and elections. Where the allowance is claimed instead of actual expenses, the same receipts cannot also be reduced by those expenses. Read HMRC's property allowance guidance.

If the records show a property loss, HMRC's campaign guidance says a year with no undisclosed tax liability is not included in the disclosure. However, the loss calculation can still be important because a valid UK property business loss may be carried forward against later profits from the same property business.

If a landlord has notified HMRC but later establishes that no disclosure is needed, they should contact HMRC. Ignoring the notification may lead HMRC to follow up for the expected disclosure.

Common misunderstandings that lead to undeclared rent

“The rent only covered the mortgage”

A mortgage payment usually includes capital and interest.

The capital repayment is not a deductible rental expense. For individual landlords with residential property, relief for qualifying finance costs has also been restricted since April 2017 and has been given entirely as a basic-rate tax reduction from 2020/21 rather than as a deduction from rental income.

The treatment must be calculated using the rules that applied in each historical year. HMRC explains the phased restrictions in its residential landlord finance-cost guidance.

“The letting agent dealt with everything”

A letting agent may collect rent, deduct management fees and arrange repairs. This does not remove the landlord's tax responsibility.

The gross rent and allowable expenses normally need to be identified separately. Recording only the net amount transferred by the agent can understate both income and expenditure.

“I did not make any cash profit”

Cashflow and taxable profit are not the same.

Mortgage capital repayments, deposits, capital improvements and personal withdrawals can affect cash without being deductible in calculating rental profit. Conversely, some allowable expenses may have been paid personally and may not be visible in the rental bank account.

“It was my former home, not an investment property”

The history of the property may affect reliefs on a later sale, but rent received after the property is let can still be taxable property income.

“The income was paid to my spouse”

Tax generally follows the person entitled to the property income. Simply directing rent into another person's bank account does not necessarily transfer the beneficial ownership of the property or the tax liability.

“I live overseas, so the rent is not taxable in the UK”

UK property income generally remains within the UK tax system even where the landlord lives abroad. The Non-resident Landlords Scheme concerns the collection of tax from rent; it does not automatically settle the landlord's final Income Tax position.

“HMRC will not know”

HMRC can compare information from tax records, government bodies, overseas authorities and third parties. Certain digital platforms have also been required since 2024 to collect and report information about sellers, including people who rent out property. HMRC explains these rules in its guidance for people selling goods or services through digital platforms.

The practical question is therefore not whether the omission might remain invisible. It is how to correct the position accurately before HMRC takes further action.

The Let Property Campaign process

There are two main stages.

Stage 1: Notify HMRC

The landlord or their agent first tells HMRC that they intend to make a disclosure.

At the notification stage, HMRC does not require the full rental figures or the final tax calculation. The purpose is to register the intention to disclose.

HMRC then issues:

A Disclosure Reference Number
A Payment Reference Number
An acknowledgement showing the disclosure deadline

The Disclosure Reference Number should be used in communications about the campaign. The Payment Reference Number should be used when settling the liability.

An agent can notify and disclose for a client. HMRC may require form COMP1a so that it can deal with the agent in relation to the disclosure.

Stage 2: Disclose and pay

The landlord must submit the full disclosure within 90 days from the date of HMRC's notification acknowledgement.

This is an important deadline.

The 90-day period is used to:

Gather and reconstruct records
Establish ownership and income shares
Identify every relevant tax year
Calculate rental income and allowable expenses
Apply the historical tax rules for each year
Calculate the additional Income Tax or Capital Gains Tax
Calculate late-payment interest
Determine and calculate any penalties
Explain how and why the omission occurred
Prepare the formal offer
Arrange payment

HMRC must receive the disclosure and payment by the deadline unless payment arrangements have been agreed in advance.

Notifying HMRC before the calculations are ready can therefore create immediate time pressure. A landlord should start collecting information before notification where possible, while avoiding unnecessary delay in telling HMRC once the issue is known.

Which tax years should be included?

The answer depends on:

Whether the landlord registered for Self Assessment when required
Whether tax returns were submitted
Whether a submitted return was inaccurate
Why the error occurred
Whether the behaviour was reasonable, careless, deliberate or concealed
Whether a tax return can still be filed or amended
Whether the income or gain was onshore or offshore

It is not safe to include an arbitrary number of years.

HMRC's campaign guidance gives the following maximum look-back periods:

Failure to notify HMRC

Where the landlord did not notify HMRC of chargeability by the required deadline, the disclosure may need to cover up to 20 years.

Registered on time and took reasonable care

Where the landlord registered on time and an error occurred despite taking reasonable care, HMRC may consider up to 4 years.

Registered on time but acted carelessly

Where the landlord registered on time but the underpayment arose from careless behaviour, HMRC may consider up to 6 years.

Deliberate understatement or omission

Where the landlord deliberately understated or omitted the income, the disclosure may need to cover up to 20 years.

These are maximum periods, not a rule that every disclosure automatically covers that many complete tax years.

The correct start and end years need to be mapped carefully.

Current and recent tax years may use a different route

The campaign is not used indiscriminately for every year.

HMRC's guidance states that:

Income for the current tax year should be reported through the normal tax return process
Income for the tax year immediately before the current year should normally be included on that year's return rather than in the campaign disclosure
A return already submitted may be amended within the statutory amendment window
If HMRC issued a tax return for 2022/23 or a later year and it remains outstanding, that return must be filed rather than including the year in the disclosure

As at August 2026, this will commonly mean:

2026/27 income is dealt with through the tax return following the end of that tax year
2025/26 income is reported on the 2025/26 tax return, normally due online by 31 January 2027
An open amendment should be made where the relevant return is still within time
Outstanding returns issued by HMRC may need to be completed separately

A landlord may therefore need to use a combination of:

The Let Property Campaign for older liabilities
Late or amended Self Assessment returns for more recent years
Normal future Self Assessment or Making Tax Digital reporting

This separation is one of the most common technical traps in preparing a disclosure.

How to calculate the disclosure

The calculation should be prepared tax year by tax year.

1. Establish the properties and ownership periods

Create a schedule showing:

Every residential property let
The date letting started and ended
Any periods of personal occupation
Ownership changes
Joint owners and beneficial ownership percentages
Whether a Form 17 declaration applied
Whether the property was in the UK or abroad
Whether it was used for long-term or short-term letting
Any sale, gift or other disposal

This timeline determines which person, tax year and tax rules apply.

2. Reconstruct gross rental income

The calculation should normally begin with the gross income before an agent or platform deducts costs.

Useful records may include:

Letting-agent statements
Tenancy agreements
Bank statements
Rental ledgers
Airbnb, Booking.com or other platform reports
Invoices and payout statements
Deposit records
Insurance claims or compensation relating to rent
Foreign bank statements
Non-resident landlord tax certificates

The bank deposit received from an agent may not equal the gross rent. Agent fees, repairs, cleaning, commissions and other charges may already have been deducted.

3. Identify allowable expenses

Potentially allowable day-to-day property expenses may include:

Letting-agent and management fees
Repairs and routine maintenance
Landlord insurance
Accountancy fees relating to the rental business
Service charges and ground rent
Council Tax and utilities paid by the landlord
Advertising for tenants
Legal fees for certain short leases or debt recovery
Replacement of qualifying domestic items
Cleaning and property management costs for short-term accommodation
Travel costs where the statutory conditions are met

This is not a universal deduction list. Every item must be checked against the rules for the relevant year and the landlord's circumstances.

In particular:

Capital improvements are not normally deducted as a repair
The capital element of a mortgage payment is not allowable
Private expenditure must be excluded or apportioned
Initial costs of acquiring the property are not routine property expenses
A property allowance claim cannot be combined with actual expense deductions for the same property business and year
Residential finance costs have special rules
Costs of an uncommercial or below-market letting may be restricted

4. Apply the rules for each historical year

A multi-year disclosure cannot be calculated by applying the current rules to every year.

Relevant changes may include:

Introduction of the property allowance from 2017/18
Phased restriction of residential finance-cost relief from 2017/18 to 2020/21
Changes in Personal Allowance and Income Tax bands
Changes in cash-basis rules
Historical furnished holiday lettings treatment up to 2024/25 and its abolition from 6 April 2025
Changes in Capital Gains Tax rates and allowances
Changes in reliefs and reporting requirements

The calculation should preserve a clear audit trail showing the law and rates applied to each tax year.

5. Calculate the overall property result

For a normal UK property business, the income and expenses from the landlord's UK properties are generally combined to determine the overall profit or loss.

This means a loss on one UK property may be automatically set against profit from another property in the same UK property business for that year.

Foreign property income is generally treated as a separate overseas property business and should not simply be merged into the UK property calculation.

HMRC explains the basic approach in its guidance on working out rental income.

6. Account for property losses correctly

Where allowable expenses exceed rental income, the property business may make a loss.

Normally, a UK property business loss is carried forward against future profits from the same property business. It is not generally deducted from salary, dividends or unrelated income.

A loss year may still affect the calculation for later disclosure years even though no tax is due for the loss year itself.

The existence and use of losses should be supported by calculations and records. A landlord should not omit loss years from the working papers merely because those years are not entered as tax liabilities on the disclosure form.

7. Recalculate the landlord's complete tax position

Rental profit cannot be taxed in isolation.

The correct liability may depend on the landlord's other income and circumstances in the year, including:

Employment income
Self-employment profits
Pensions
Savings income
Dividends
Other property income
Personal Allowance entitlement
Tax-band allocation
Reliefs and losses
Tax already deducted
Capital gains

The additional rental income may move part of the landlord's income into a higher tax band or reduce a means-tested allowance or relief.

HMRC's disclosure calculator can help in straightforward cases, but HMRC warns that it is not suitable for every combination of income. Rental profit should not be entered as self-employment profit because that could incorrectly calculate Class 4 National Insurance.

8. Calculate late-payment interest

Interest is charged from the original date the tax should have been paid until the date it is actually paid.

It is calculated daily.

Interest is not optional and is separate from any penalty. HMRC may reject a disclosure that does not include the correct interest.

Because HMRC interest rates can change, the calculation should use the applicable rates for the relevant periods and expected payment date.

9. Calculate the penalty

The landlord normally needs to self-assess the appropriate penalty as part of the disclosure.

The result depends on several distinct questions:

Was there a failure to notify or an inaccurate return?
Was the disclosure prompted or unprompted?
Was the behaviour non-deliberate, careless, deliberate or deliberate and concealed?
How quickly did the landlord disclose?
What was the quality of the disclosure?
Did the issue involve an offshore income or gain?
Was there a reasonable excuse or had reasonable care been taken?

There is no single fixed Let Property Campaign penalty rate.

Failure to notify and inaccurate return penalties are different

A failure to notify can arise where a landlord became liable to tax but did not tell HMRC by the required deadline.

An inaccuracy can arise where the landlord filed a return but omitted or understated property income.

The terminology matters:

For a failure to notify, the relevant defence may be a reasonable excuse for the failure, followed by correction without unreasonable delay after the excuse ended
For an inaccurate return, HMRC considers whether the taxpayer took reasonable care

Lack of awareness of the rules does not automatically establish either reasonable excuse or reasonable care. HMRC considers the person's circumstances, abilities, records, enquiries and actions.

Prompted and unprompted disclosures

HMRC generally treats a disclosure as unprompted if the taxpayer discloses before having reason to believe that HMRC has discovered or is about to discover the issue.

At other times, it is normally prompted.

Receiving a letter from HMRC about the property or rental income may therefore affect the classification. A landlord should not assume that using the online campaign automatically makes the disclosure unprompted.

Unprompted disclosures usually have lower minimum penalty percentages.

For onshore failures to notify, HMRC's current statutory ranges include:

Non-deliberate and disclosed within 12 months of the tax becoming due: 0% to 30% for an unprompted disclosure, or 10% to 30% for a prompted disclosure
Non-deliberate and disclosed 12 months or more after the tax was due: 10% to 30% for an unprompted disclosure, or 20% to 30% for a prompted disclosure
Deliberate but not concealed: 20% to 70% for an unprompted disclosure, or 35% to 70% for a prompted disclosure
Deliberate and concealed: 30% to 100% for an unprompted disclosure, or 50% to 100% for a prompted disclosure

For inaccuracies in returns, the common onshore ranges are:

Reasonable care: No penalty for either an unprompted or prompted disclosure
Careless: 0% to 30% for an unprompted disclosure, or 15% to 30% for a prompted disclosure
Deliberate but not concealed: 20% to 70% for an unprompted disclosure, or 35% to 70% for a prompted disclosure
Deliberate and concealed: 30% to 100% for an unprompted disclosure, or 50% to 100% for a prompted disclosure

These ranges are a general summary of HMRC's onshore factsheets. Offshore rules can produce higher penalties, and the exact legislation applicable to older years should be checked. HMRC states that penalties can be up to 100% of an onshore liability and up to 200% for an offshore liability.

Read HMRC's current factsheets on failure-to-notify penalties and inaccuracy penalties.

The quality of disclosure affects the penalty

Within the statutory range, HMRC considers the quality of the disclosure under three headings:

Telling HMRC what went wrong
Helping HMRC quantify and correct the problem
Giving HMRC access to relevant records and information

Delay can restrict the reduction.

HMRC's Let Property Campaign guidance states that where a significant period has passed, normally more than three years, HMRC may restrict the maximum reduction so that the penalty is unlikely to be reduced below ten percentage points above the statutory minimum.

This means a landlord should not automatically select the lowest figure in the range. The penalty needs a reasoned calculation based on the facts.

10. Make the formal offer and arrange payment

The disclosure includes an offer to pay the full amount due.

HMRC states that the landlord's offer and HMRC's letter accepting it create a legally binding contract.

The total normally includes:

Additional tax
Interest
Penalties

Payment should quote the Payment Reference Number issued after notification.

What if the landlord cannot pay within 90 days?

The landlord should not ignore the deadline or submit the disclosure without addressing payment.

HMRC expects payment when the disclosure is made. If the landlord cannot pay in full, they should contact the Let Property Campaign helpline before submitting the disclosure and before the 90-day deadline.

HMRC may ask for details of:

Current income and expenditure
Bank balances
Property and other assets
Mortgages and other debts
The amount that can be paid immediately
The proposed timing of the remaining payments

A payment arrangement is not automatic. It depends on the landlord's financial position and ability to pay.

The current Let Property Campaign contact page provides the helpline and postal details.

What if the records are incomplete?

Missing records do not remove the obligation to disclose.

HMRC says the landlord should make a best estimate where the necessary business records are incomplete. The method and assumptions should be retained because HMRC may ask how the estimate was calculated.

Possible reconstruction sources include:

Replacement bank statements
Letting-agent statements
Tenancy agreements
Property-management software
Online platform reports
Emails with tenants or agents
Mortgage statements
Insurance records
Supplier invoices
Council Tax and utility records
Comparable periods where no better evidence exists

An estimate should be reasonable and evidence-based. It should not be a convenient round figure chosen to reduce the tax.

If a cost cannot be supported, that does not always mean it never occurred. However, the basis for any estimate must be credible, consistent and documented.

HMRC can charge a record-keeping penalty of up to £3,000 where appropriate records have not been maintained.

Jointly owned property

Each individual must make a separate disclosure for their own share of the income and liability.

A husband and wife cannot submit one combined Let Property Campaign disclosure. The same applies to other joint owners.

The correct income split should be established before the calculations are prepared.

For spouses and civil partners who live together and jointly own property, income is normally taxed equally unless a valid exception applies. Where beneficial ownership and income entitlement are unequal, a valid Form 17 declaration may allow the income to be taxed in those actual unequal shares from its effective date.

Form 17 does not retrospectively create an ownership split that did not exist. It must reflect the existing beneficial interests in both the property and the income and be supported by evidence.

For unmarried joint owners, the tax position normally follows each person's actual entitlement to the property profit.

HMRC's Form 17 guidance explains the declaration for spouses and civil partners.

Non-resident landlords and overseas property

Residence can make the disclosure more complex.

A landlord living abroad with UK property

UK rental income can remain taxable in the UK even when the landlord lives overseas.

Tax deducted by a letting agent or tenant under the Non-resident Landlords Scheme should be identified and credited correctly. Approval to receive rent without deduction does not mean the income is exempt from UK tax.

Each non-resident joint owner is treated separately under the scheme. HMRC's Non-resident Landlords Scheme guidance explains how tax is collected.

A UK resident with foreign residential property

A UK-resident individual may have a UK tax liability on overseas rental income, subject to residence status, the applicable tax treaty and any available foreign tax credit.

Foreign currency amounts must be translated using an appropriate exchange rate. Foreign tax paid is not simply deducted as a rental expense; relief may need to be calculated under the foreign tax credit rules.

HMRC treats foreign income and gains as offshore matters for penalty purposes. The potential penalties and historical assessment rules can be more severe, so professional advice is strongly recommended.

Other undisclosed income and gains must not be ignored

A condition of using the Let Property Campaign is that the disclosure includes all income and gains that have not previously been reported, not only the residential rent that brought the landlord into the campaign.

This could include:

Profit from another business
Untaxed investment income
Income from non-residential property or land
Capital gains on property, shares or other investments

The form also allows the landlord to indicate possible issues involving VAT, PAYE, Inheritance Tax, trusts, estates, residence status or tax credits so that HMRC can route those matters appropriately.

Leaving unrelated income out can make the disclosure incomplete and jeopardise the campaign treatment.

Does the campaign cover Capital Gains Tax on a property sale?

The disclosure can include previously undisclosed capital gains, but it should not be treated as a substitute for meeting current property disposal deadlines.

For disposals of UK residential property within the current reporting regime, any required UK Property Capital Gains Tax Return and payment are normally due within 60 days of completion. A UK resident who files Self Assessment may also need to report the disposal on the relevant tax return.

The correct reporting route depends on when the disposal occurred, whether a return was filed and whether the amendment window remains open. See HMRC's guidance on reporting and paying Capital Gains Tax on UK property.

What happens after HMRC receives the disclosure?

HMRC will acknowledge and review it.

HMRC states that it expects most complete disclosures to be accepted. However, it may:

Ask for clarification
Request supporting calculations or evidence
Challenge the tax treatment
Disagree with the number of years included
Disagree with the behaviour or penalty rate
Compare the disclosure with information already held
Reject a materially incomplete or inaccurate disclosure

If HMRC accepts the offer, it will issue an acceptance letter. The offer and acceptance then form the settlement.

If no acknowledgement is received within 30 days of submission, HMRC recommends contacting the Let Property Campaign helpline.

HMRC can reopen the position if later information indicates that the disclosure was incorrect. In serious cases, an incomplete disclosure may lead to significantly higher penalties or be considered under HMRC's Criminal Investigation Policy.

Common mistakes when preparing a Let Property Campaign disclosure

Not distinguishing notification from disclosure

The initial notification does not settle the tax. It starts the process and leads to the 90-day deadline.

Assuming every case is limited to four or six years

A failure to notify or deliberate omission can require up to 20 years. The correct period depends on the facts.

Applying today's tax rules to old years

Historical Personal Allowances, tax bands, finance-cost rules, property allowance rules and reliefs must be used.

Using net agent receipts as rental income

The gross rent and agent deductions should normally be separated.

Deducting the full mortgage payment

Mortgage capital is not an allowable rental expense. Qualifying interest is subject to the rules for the relevant year.

Claiming repairs that are really improvements

Replacing an existing item with a broadly equivalent modern item may be a repair, but creating, extending or substantially improving an asset may be capital. The facts and the condition of the property when acquired matter.

Ignoring other income

Other undisclosed income and gains need to be considered to make the disclosure complete.

Combining joint owners in one form

Each person needs a separate notification, calculation and disclosure for their share.

Assuming voluntary always means unprompted

A disclosure can be voluntary but still prompted if HMRC has already contacted the landlord or the landlord has reason to believe discovery is imminent.

Selecting the lowest penalty without analysis

The penalty must be supported by the behaviour, timing and quality of disclosure. HMRC can reject a disclosure that uses an inappropriate penalty.

Forgetting interest

Interest runs from the original payment date and must be included.

Including years that should be filed as returns

Current, immediately preceding, open amendment and outstanding-return years may require a different reporting route.

Waiting until the 90-day deadline to discuss payment

Payment arrangements should be discussed with HMRC before the disclosure is submitted.

Documents to gather before calculating the disclosure

A landlord should normally collect:

Full property addresses
Dates each property was acquired, first let and ceased to be let
Tenancy agreements
Letting-agent statements
Bank and credit-card statements
Platform statements and payout reports
Mortgage statements separating capital and interest
Loan agreements and finance charges
Repairs and maintenance invoices
Insurance statements
Service-charge and ground-rent statements
Council Tax and utility bills paid by the landlord
Legal and accountancy invoices
Replacement furniture and appliance invoices
Ownership documents and declarations of trust
Form 17 submissions and HMRC acknowledgements
Previous tax returns and tax calculations
P60s, pension statements, dividend records and other income evidence
Details of property losses brought forward
Non-resident landlord deduction certificates
Foreign rental statements, foreign tax records and exchange-rate calculations
Property purchase and sale completion statements
Capital-improvement invoices
Correspondence already received from HMRC

The list should be tailored to the properties, tax years and issues involved.

A practical disclosure checklist

Before notifying HMRC:

Confirm that the Let Property Campaign is the correct disclosure route
Check whether HMRC has already opened an enquiry
Identify every property and joint owner
Gather enough information to estimate the scope of the issue
Identify current, prior, amendment and outstanding-return years
Consider whether any offshore income or gain is involved
Consider whether specialist legal advice is needed

After notification:

Record the Disclosure Reference Number
Record the Payment Reference Number
Diary the exact 90-day deadline
Reconstruct gross income and expenses by property and tax year
Establish the correct ownership share for each person
Calculate losses and their use
Apply the historical tax rules
Recalculate the taxpayer's full Income Tax and Capital Gains Tax position
Calculate interest to the expected payment date
Analyse failure, behaviour and prompted or unprompted status
Calculate and explain the penalty
Include all other undisclosed income and gains
Prepare the formal offer
Contact HMRC before submission if full payment is not possible
Review the entire disclosure for accuracy and completeness
Submit and pay by the deadline
Retain the submission, calculations and supporting records
Correct current and future tax reporting

How an accountant can help

A Let Property Campaign disclosure is not simply a form-filling exercise.

An accountant can help to:

Confirm whether the campaign is the correct route
Separate disclosure years from tax-return and amendment years
Reconstruct missing rental records
Identify gross income hidden within net agent or platform payments
Review repairs, improvements and other expenses
Apply historical finance-cost restrictions
Calculate the correct ownership share
Review Form 17 and beneficial ownership evidence
Calculate and use property losses
Recalculate tax using all sources of income
Account for foreign income and foreign tax
Calculate interest
Analyse behaviour and penalty ranges
Prepare the disclosure narrative and formal offer
Deal with HMRC as an authorised agent
Establish a compliant process for future reporting

Professional involvement does not guarantee that HMRC will accept a particular treatment or penalty. It can, however, reduce the risk of an incomplete, internally inconsistent or technically incorrect disclosure.

Frequently asked questions

Is the Let Property Campaign still open?

Yes. HMRC's current guidance continues to provide the campaign for qualifying individual residential landlords. Landlords should check the current GOV.UK guidance before acting because the procedure can change.

Is the campaign only for professional landlords?

No. It also applies to accidental and occasional landlords, including people who inherited a property, moved home or let a room above the Rent a Room threshold.

Can a landlord use the campaign before HMRC contacts them?

Yes. This is normally the best time to review a voluntary disclosure because the penalty minimum may be lower if the disclosure is unprompted.

Can the campaign be used after HMRC sends a letter?

Possibly, depending on the nature and timing of the letter. However, the disclosure may be prompted, and if HMRC has already opened an enquiry or compliance check, the issue should normally be disclosed to the officer dealing with it.

How long does a landlord have after notifying HMRC?

The disclosure and payment must normally reach HMRC within 90 days of the notification acknowledgement.

Does the campaign remove penalties?

No. A penalty may still be due. The rate depends on the type of failure, behaviour, timing, quality of disclosure and whether the liability is onshore or offshore. Some reasonable-care or reasonable-excuse cases may have no penalty, but this must be supported by the facts.

Will HMRC accept estimated figures?

HMRC permits a best estimate where records are incomplete, but the method and assumptions must be reasonable and retained. HMRC may ask for an explanation and supporting evidence.

Can husband and wife make one disclosure?

No. Each person must notify and disclose separately for their own share of the income and tax.

Can a limited company use the campaign?

No. The Let Property Campaign does not cover a company. A different voluntary disclosure or Corporation Tax correction route may be required.

Can a trust use the campaign?

No. A trust cannot use the Let Property Campaign. The trustees should obtain advice on the correct disclosure route.

Can commercial property income be disclosed?

A landlord whose only omitted property income is from non-residential property is outside the campaign. However, once a qualifying residential landlord uses the campaign, all other undisclosed income and gains must be considered as part of a complete disclosure.

What if the property made a loss?

A year with no unpaid tax is not entered as a liability in the disclosure. The loss should still be calculated because it may reduce later profits from the same property business.

What if tax was deducted under the Non-resident Landlords Scheme?

The deductions should be included as tax already paid when the final liability is calculated. The landlord may still have a reporting obligation and may owe additional tax or be due a repayment.

Does the disclosure register the landlord for future Self Assessment?

The landlord must ensure that the correct registration and filing arrangements are in place for current and future years. This should not be assumed to happen automatically in every case merely because a disclosure was submitted.

Will a landlord need Making Tax Digital for Income Tax afterwards?

Possibly. From 6 April 2026, qualifying individual landlords and sole traders with total qualifying gross income over £50,000 are within Making Tax Digital for Income Tax, subject to the detailed eligibility and exemption rules. HMRC's Making Tax Digital for Income Tax guide explains the current requirements.

The key point: disclose before the problem escalates

The Let Property Campaign offers qualifying landlords a structured way to correct unpaid tax.

Its value is not that it removes the liability. Its value is that a complete and timely disclosure can provide a route to settlement and will normally result in a better penalty position than waiting for HMRC to identify the omission.

However, the process requires more than entering historic rent into a calculator.

The landlord must establish:

Who was taxable
Which properties and income are involved
Which years belong in the disclosure
Which years require returns or amendments
What expenses and losses are allowable
Which historical tax rules apply
Whether the issue was onshore or offshore
Whether the disclosure is prompted or unprompted
What behaviour and penalty rate are appropriate
Whether other income or gains must be included
How the full amount will be paid

A disclosure that is rushed, incomplete or based on the wrong assumptions may not achieve the intended protection.

Speak to PR Accountants Ltd

PR Accountants Ltd can help landlords review undeclared rental income and prepare a complete Let Property Campaign disclosure.

Our support can include:

Reviewing whether the campaign applies
Reconstructing rental income and expenses
Preparing property profit and loss calculations
Reviewing joint ownership and income splits
Calculating tax, interest and penalties
Preparing disclosure forms and supporting schedules
Dealing with HMRC as agent
Completing related Self Assessment returns or amendments
Establishing accurate bookkeeping for future years
Supporting landlords with Making Tax Digital for Income Tax

The earlier the position is reviewed, the more time there is to establish the facts, locate records and choose the correct reporting route.

PR Accountants Ltd
Email: info@praccounting.co.uk
Telephone: 0330 043 0792
Website: www.praccounting.co.uk

This article provides general information and does not constitute personalised tax, accounting, legal or financial advice. Disclosure periods, tax calculations, penalties and reporting routes depend on the precise facts and the law applying to each tax year. Serious or deliberate cases may require specialist legal advice.