Let Property Campaign Accountant
Have you received a letter from HM Revenue and Customs (HMRC) under the Let Property Campaign? Are you letting out a property but haven’t paid tax on your rental profits? If the answer is YES, our expert Let Property Campaign Accountants can help you resolve the issue by making the correct disclosures under the Let Property Campaign.
- Chartered Certified Accountants
- Fixed Fee Services
- Tax Liability Minimisation
What is the 'HMRC Let Property Campaign'?
The HMRC Let Property Campaign was launched in September 2013 to encourage landlords to come forward and disclose any undeclared rental income. The campaign provides incentives for those who have underpaid tax, including lower penalties and the opportunity to make a full and final disclosure of any outstanding tax liabilities.
If you are unsure about how to proceed, an experienced Let Property Campaign Accountant can guide you through the process. To benefit from the campaign:
- HMRC must be notified of your intention to disclose undeclared rental income; AND
- The disclosure and payment must be made within 90 days of receiving acknowledgment from HMRC.
Benefits of Making a Voluntary Disclosure under the HMRC Let Property Campaign
The Let Property Campaign is an opportunity to regularise your tax position with HMRC on far more favourable terms than if the tax authority discovers the omission first. A voluntary disclosure, especially when supported by a specialist Let Property Campaign Accountant, can save you money, reduce stress, and protect you from serious penalties.
Key Benefits of a Voluntary Disclosure
- Lower penalties – reduced compared to HMRC discovering undeclared income themselves.
- Clear settlement terms – straightforward calculation of tax, interest, and penalties.
- Peace of mind – avoid future HMRC investigations or enquiries.
- No prosecution risk – when disclosure is honest and complete.
- Correct past mistakes – resolve errors in expenses, mortgage interest, or overseas income.
- Expert support – a Let Property Campaign Accountant can ensure accuracy and maximise available reliefs.
- Future compliance – put your tax affairs on the right track going forward.
Penalties and Interest under the HMRC Let Property Campaign
When you make a voluntary disclosure, the amount you pay to HMRC usually includes:
Unpaid Tax
- All tax owed on undeclared rental income.
- The disclosure usually covers up to 20 years depending on circumstances, but HMRC expects landlords to take a reasonable approach when calculating the period.
Interest
- HMRC charges statutory interest on unpaid tax, calculated from the date the tax should have been paid to the date of settlement.
- Current interest rate (2025) is 7.75% per year (it changes with the Bank of England base rate).
Penalties
The penalty depends on why the income wasn’t declared and whether you came forward voluntarily:
- Careless mistake: Penalty between 0% and 30% of the tax due.
- Deliberate but not concealed: Penalty between 20% and 70%.
- Deliberate and concealed: Penalty between 30% and 100%.
Under the Let Property Campaign, penalties are usually at the lower end because the disclosure is voluntary.
Do I Need to Make a Disclosure of My UK Property Income?
You should consider making a disclosure of your UK property income if:
- You are a landlord letting out one or more UK properties.
- You are a landlord living abroad but letting out property in the UK.
If you receive a letter from HMRC under the Let Property Campaign for undeclared property income, this would be a prompted disclosure.
On the other hand, if you realise that you have unpaid tax liabilities and choose to make a disclosure proactively, this would be a voluntary disclosure. Engaging an experienced Let Property Campaign Accountant can help you navigate this process efficiently and maximise the benefits, which include:
- Reduction in tax-geared penalties for unprompted disclosures.
- The ability to negotiate payment terms, including time-to-pay arrangements.
- The opportunity to make a full and final disclosure of unpaid tax liabilities.
- Assurance from HMRC not to publish your details under the deliberate default programme.
A professional Let Property Campaign Accountant ensures your disclosure is accurate, timely, and compliant, helping you resolve any outstanding liabilities with minimal risk.
Who Can Make a Disclosure under HMRC Let Property Campaign?
The Let Property Campaign is designed for individual landlords who have not declared, or have under-declared, rental income and need to bring their tax affairs up to date. It applies to UK residents and non-UK residents who receive rental income from residential property in the UK or abroad.
Eligible individuals include:
- Single property landlords: Those letting out just one residential property, whether in the UK or overseas.
- Multiple property landlords: Those with a portfolio of residential properties generating rental income.
- Specialist landlords such as Student lets (renting to students), Holiday lets (short-term or seasonal rentals, including Airbnb-type arrangements).
- Workforce accommodation (letting to employees or contractors).
- ‘Rent a Room’ landlords: Where income from renting out part of your home exceeds the Rent-a-Room allowance (£7,500 per year).
- Non-resident landlords: Those living abroad but renting out a UK property.
Who Cannot Use the Let Property Campaign?
- Companies that own and let residential properties.
- Trusts receiving rental income.
- Individuals with undeclared income from sources other than residential property letting
Key Tax Deadlines for Self employed Taxes
- Paper Tax Return Deadline: 31 October (after the end of the tax year). Example: For the 2024/25 tax year (which ends on 5 April 2025), the paper return deadline is 31 October 2025
- Online Tax Return Deadline - 31 January. Example: For the 2024/25 tax year, the online return must be filed by 31 January 2026
- 31 January – Deadline to submit your online Self Assessment tax return.
- 31 January – Deadline to pay any tax owed for the previous tax year, including the first payment on account (if applicable).
- Late Filing by 1 day: £100 penalty if your return is up to 3 months late; more if it’s later
- Late by 3 Months: Additional Penalty - £10 per day, up to a maximum of £900.
- Late by 6 Months: Further Penalty - The greater of: £300 or 5% of the tax due. This is added on top of the previous penalties.
- Late by 12 Months: Additional Penalty - The greater of £300 or 5% of the tax due. n serious cases (e.g., deliberate concealment), this can increase to 100% of the tax due.
How Zahtax Accountants Can Help
At Zahtax Accountants, we are experts in personal taxation and have a dedicated team of specialist landlord tax advisors who can guide you on the most effective way to disclose your rental income. Our team has extensive experience in handling HMRC disclosures and ensuring landlords pay the correct amount of tax on their rental income. Since the launch of the campaign in 2013, we have successfully managed hundreds of disclosures. Our HMRC Let Property Campaign Accountants provide a full range of services, including:
- Acting as your appointed tax agent to handle the disclosure from start to finish.
- Preparing and submitting a notification of your intent to disclose.
- Calculating your taxable rental profits accurately.
- Ensuring all legitimate expenses are claimed to maximise tax savings.
- Calculating your total tax liability for each tax year, factoring in income from all other sources.
- Calculating any interest charges and penalties (if applicable) on your rental income.
- Preparing the final disclosure and submitting it to HMRC.
- Advising on how to make payments to HMRC.
- Liaising with HMRC on your behalf following submission.
HMRC Let Property Campaign – Frequently Asked Questions (FAQs)
Get answers to common questions about sole trader tax requirements and our services.
I haven’t declared my property income for the last ten years. How will HMRC respond if I decide to disclose under the Let Property Campaign?
HMRC’s main goal is to make sure you bring any undeclared property or other income up to date and pay the correct tax. Our experienced team will guide you every step of the way to make sure your disclosure is complete and accurate. We will appoint Zahtax Accountants as your tax advisor with HMRC and handle all communications on your behalf. Once we are acting as your agent, you won’t need to deal with HMRC directly, giving you peace of mind throughout the process.
Can I be prosecuted for not declaring my rental income?
HMRC is generally not interested in prosecution as long as you make a full and voluntary disclosure of any undeclared or incorrectly claimed tax. However, they cannot offer absolute immunity from prosecution. In cases of serious tax fraud or deliberate attempts to conceal income, HMRC may carry out criminal investigations.
What happens after the disclosure is made?
Once your disclosure has been submitted, HMRC expects you to keep your tax affairs up to date. This means you should continue to report your income and gains accurately in the future, ensuring your tax obligations are met without any issues.
What happens after the disclosure is accepted?
After your disclosure is accepted, HMRC may continue to receive information from various sources. They use this information to ensure that all taxpayers have made accurate disclosures and that the details provided align with the data they hold.
Will I have to deal with HMRC directly?
No. When you appoint a Let Property Campaign Accountant like Zahtax, we manage all communications with HMRC on your behalf, ensuring a smooth and stress-free process.
Can I avoid penalties entirely?
While full immunity is not guaranteed, voluntary disclosure usually results in significantly reduced penalties and avoids the risk of more severe consequences, including criminal investigation.
How are penalties and interest calculated?
Penalties depend on whether the omission was careless or deliberate, while interest is charged on unpaid tax from the date it was originally due. Voluntary disclosure under the Let Property Campaign typically results in lower penalties than if HMRC discovers the undeclared income themselves.