The Let Property Campaign: Essential information landlords need to know

Let Property Campaign: what is it?

The Let Property Campaign is designed to give residential landlords in the UK the best terms possible to pay Her Majesty’s Revenue and Customs (HMRC) any undisclosed taxes that they owe.

The campaign was designed by HMRC in order to crack down on residential landlords who are not disclosing income. As tax evasion is punished with high financial penalties and even criminal prosecution, the best thing to do is to disclose all taxable income to HMRC.

If you are a UK landlord who rents out residential property the Let Property Campaign could be the perfect opportunity for you to update your tax affairs and get them in order.


Let Property Campaign: who can benefit from it?

The terms of the Let Property Campaign apply to you if you are an individual landlord who rents out one or more residential properties. This includes residential landlords who:

1. Are classed as specialist landlords, for example those who cater to the workforce or students
2. Live abroad and rent a property in the UK
3. Live in the UK and rent a property abroad
4. Rent holiday homes that they also use

If you are a landlord renting a room in your own home, the Let Property Campaign may or may not apply to you. This is dependent upon whether or not the rent is higher than the threshold specified by the Rent a Room Scheme – £7,500. If you pay tax on the rent that you receive, the Let Property Campaign does apply to you.

The Let Property Campaign does not apply to you if you:

1. Rent commercial property
2. Are a company renting residential property
3. Are a trust renting residential property

It is important to bear in mind that many people – such as those renting a flat in order to pay its mortgage, or those who are renting their own main home temporarily while living elsewhere – are technically classed as residential landlords, even if they might not view themselves that way.

For this reason it is vital that you make sure that you are paying the right amount of tax – you do not want to receive a penalty for tax evasion as a result of an honest mistake. It is your responsibility to make yourself aware of the rules so that there are no such misunderstandings.

If you are in any doubt as to whether or not the Let Property Campaign applies to you, HMRC’s questionnaire will provide guidance tailored to your individual circumstances and help you decide on the best action to take.


Let Property Campaign: how does it work?

In order to make an income disclosure to HMRC, you will need a Government Gateway account. If you are not sure how much you owe, HMRC provides two income tax calculators to help you work it out:

1. The tax, interest and penalty calculator (up to 9 years of unpaid tax)
2. The interest and penalty calculator (up to 19 years of unpaid tax)

Should you need more time to pay what you owe, it is vital that you call the HMRC income tax helpline within 90 days.