Haven’t Declared Your Rental Income? Resolve It Before HMRC Finds You.

The HMRC Let Property Campaign (LPC) is an ongoing initiative aimed at individual landlords who have underpaid tax on their rental income. Whether the omission was unintentional or deliberate, coming forward voluntarily is the only way to significantly minimize penalties and avoid criminal prosecution.

Book a Confidential Disclosure Call

Why You Need to Act Now

HMRC is currently using the ‘Connect’ database—a sophisticated AI tool that cross-references Land Registry records, bank interest data, and letting agent reports.

If you have received a “Nudge Letter” from HMRC, they likely already have evidence of your undeclared income. Ignoring this letter often leads to a full tax investigation, higher penalties (up to 100% of the tax owed), and potential public naming.

Our Specialist Disclosure Process

As Chartered Accountants, we provide a “professional shield” between you and the tax office.

Phase 1: The “Clean Slate” Audit

We perform a forensic review of your property income. We don’t just calculate tax; we identify every allowable expense—repairs, insurance, management fees, and finance costs—to ensure you only pay the absolute minimum required by law.

Phase 2: Formal Notification & Disclosure

We handle the technical submission to the Let Property Campaign. This includes calculating interest and recommending a penalty percentage based on your specific “quality of disclosure.”

Phase 3: Penalty Negotiation

HMRC penalties vary wildly based on whether the error was “careless” or “deliberate.” We advocate for your position, aiming for the lowest possible penalty or, in cases of “reasonable excuse,” zero penalties.

Frequently Asked Questions

What exactly is the Let Property Campaign?

The Let Property Campaign is a specific opportunity for individual landlords (including those letting out a single room or holiday homes) to bring their tax affairs up to date. It offers better terms than if HMRC discovers the underpayment through their own investigation.

How far back can HMRC go with the Let Property Campaign?

The “Look Back” period depends on why the tax was underpaid:

• 4 Years: If you took reasonable care but still made a mistake.
• 6 Years: If the underpayment was “careless.”
• 20 Years: If you deliberately didn’t tell HMRC about your income. We help you determine which category you fall into to minimize your exposure.

What is the “6-year rule” for property tax?

Generally, HMRC can go back 6 years to recover tax if they deem an error was “careless.” However, many landlords mistakenly believe they are “safe” after 6 years. If HMRC proves “deliberate” non-disclosure, the window extends to 20 years.

Can I be prosecuted for not declaring rental income?

While HMRC has the power to prosecute for tax evasion, they rarely do so for those who make a voluntary disclosure through the Let Property Campaign. Prosecution is typically reserved for those who ignore “nudge letters” or provide false information during an investigation.

What are the penalties for undeclared rental income?

Penalties are a percentage of the tax owed.

• Voluntary Disclosure: Can be as low as 0% to 20%.
• Prompted Disclosure (after a nudge letter): Usually 35% to 70%.
• HMRC Investigation: Can reach 100% or more if the income is held offshore.

What happens if I ignore HMRC’s nudge letter?

Ignoring the letter is a “high-risk” strategy. HMRC usually follows up with a formal inquiry or a “Discovery Assessment.” At this stage, you lose the ability to claim the more favorable terms offered by the Let Property Campaign.

Is This Right For You?

This service is specifically designed for:

• Individual UK Landlords: Whether you have one property or a large portfolio.
• Expat Landlords: UK residents living abroad with undeclared UK rental income.
• Inherited Property Owners: Those who didn’t realize tax was due on a property they inherited and let out.
• Recipients of Nudge Letters: If you’ve received a letter titled “Your Income from Property,” you must act within the 30-day window usually provided.