Date posted: 1st Jun 2026
If you receive rental income, it is important to check whether HMRC has been notified.
In some cases, landlords need to tell HMRC even where no tax is due.
This applies to a wide range of property income, including buy-to-let properties, rooms let in a main home, holiday lets and even land such as a driveway. If your rental income has not been reported correctly, it is sensible to review your position now.
When should HMRC be notified?
HMRC expects rental income to be reported where it is taxable and not already included on a Self Assessment tax return. This may apply whether the income comes from a single property, multiple properties, furnished holiday accommodation or another letting arrangement.
You may also need to notify HMRC if the rent is received through a letting agent, an online platform or another third party. The method of receipt does not remove the reporting obligation.
If HMRC has not already issued you with a notice to file a tax return, you should check whether you need to register for Self Assessment.
Does the Property Allowance apply?
The Property Allowance may mean that some landlords do not need to report small amounts of rental income. The allowance is £1,000, and if your total property income falls within that limit, you may not need to notify HMRC.
However, the position is not always straightforward. If your income is above the allowance, or if you have more than one source of property income, it is important to review the figures carefully. Joint ownership, deductible expenses and other reliefs can all affect the final tax position.
What if rental income has been missed?
If rental income has not been declared, it is usually better to address the issue voluntarily rather than wait for HMRC to discover it. HMRC’s Let Property Campaign is designed for landlords who need to disclose previously undeclared rental income and bring their tax affairs up to date.
Making a voluntary disclosure can help reduce the risk of higher penalties. The longer the issue remains unresolved, the greater the potential exposure to tax, interest and penalties.
How far back can HMRC go?
The number of years HMRC can look back depends on the reason for the error.
Where reasonable care was taken, the look-back period may be shorter.
Where the omission was careless or deliberate, HMRC can go further back.
That is why it is important to act quickly if you suspect rental income has not been declared.
A prompt review can help determine the correct disclosure position and limit the risk of unnecessary penalties.
What landlords should do now?
If you are unsure whether all rental income has been reported correctly, the first step is to gather your records. This should include rent received, expenses, bank statements, tenancy agreements and any previous tax returns.
You should then check whether:
- your rental income is within the Property Allowance.
- you are already within Self Assessment.
- any income has been omitted from earlier returns.
- a voluntary disclosure is needed.
If the position is unclear, our advice can help you avoid errors and deal with HMRC in the most appropriate way. Give us a call to discuss your position.
