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What is the Let Property Campaign for Landlords?

September, 2023

Non-compliant Landlords Beware

HMRC have access to an enormous amount of information that they use to target landlords of all types who have not disclosed details of their rental income. Where they find evidence of deliberate non-compliance the penalties can be as much as 100% of the unpaid tax, or even 200% for offshore related income. In the most serious of cases, HMRC may initiate a criminal investigation. Non-compliant landlords beware.

By Chris Davies

What is the Let Property Campaign?

The Let Property Campaign gives landlords who owe tax through letting out residential properties a way to rectify their tax affairs easily. Whether you are in the UK or abroad, this campaign presents a chance for landlords to come clean on undisclosed income related to renting out properties.
The Let Property Campaign is open to all residential property landlords with undisclosed taxes, including those who own multiple properties, landlords with single rentals, and specialist landlords. Even those who rent out a room in their primary residence can participate. However, it does not cover non-residential property landlords like garage or shop owners, nor can it be used to disclose income on behalf of companies or trusts.

How to participate in the Let Property Campaign:

To participate in the Let Property Campaign, HMRC must be notified of the intention to make a disclosure first. The Digital Disclosure Service (DDS) form is specifically designed for individuals and companies, that need to disclose taxes. Once the unique Disclosure Reference Number (DRN) has been received, the disclosure process can begin.
To make a disclosure, it’s crucial to prepare by gathering all the necessary information and records. Although HMRC gives 90 days from the notification acknowledgment date to complete the disclosure, the process should be started early for a smooth process. Calculating the total rental income for each year to HMRC can be simple or complicated depending on the circumstances.
There is a period of 90 days after the notification acknowledgment date to submit the disclosure and make the necessary payment.

What if you need help?

HMRC’s helpline is available to provide additional support to landlords who may have challenges managing their tax affairs. While HMRC’s helpline is technically available, we know that it can be very frustrating and confusing, so it may be better to consult an accountant, who works with many landlords and has experience of the Let Property Campaign.

Benefits of participating in the Let Property Campaign: The Let Property Campaign is ongoing, making it easy for landlords to participate at any time. It is advisable to participate early, though, to take advantage of the best possible terms.

Possible Penalties and Payment Options: The applicable penalties for failing to disclose your income vary depending on the circumstances. Deliberately withholding information from HMRC may attract more significant penalties than simple mistakes. However, participating in the Let Property Campaign can lead to lesser penalties than HMRC uncovering non-payment of taxes later.

If paying the owed amount in a lump sum is not feasible, HMRC may allow landlords to spread out their payments based on their circumstances.

Next steps

For more information, we recommend referring to the official resources below:

If you require further assistance or have specific questions regarding the Let Property Campaign, reach out to a professional tax advisor or the HMRC helpline.

Remember, taking proactive steps to ensure your tax affairs are in order will lead to long-term financial stability and peace of mind as a landlord

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