Penalties up to 200%
Undeclared rental income can result in hefty fines, backdated tax bills covering 20 years, and criminal prosecution.
If you're a landlord with undeclared rental income, HMRC is stepping up its efforts in 2025 to identify and recover unpaid taxes. Thousands of property owners across the UK are being contacted.
HMRC has been targeting landlords for years, but in 2025, the pressure is higher than ever. The government is keen to close the tax gap, and rental income is a prime focus.
Since January 2025, platforms like Airbnb, Booking.com, and Vrbo are legally required to share host income data with HMRC.
HMRC uses advanced technology to cross-check rental income against Land Registry records, mortgage data, bank transactions, and tenancy deposit schemes.
HMRC encourages neighbours, tenants, or ex-business partners to report suspected undeclared rental income.
This campaign allows landlords to voluntarily disclose unpaid taxes with reduced penalties.
Act now: If you have undeclared rental income, coming forward voluntarily before HMRC contacts you significantly reduces penalties.
Many landlords are now receiving nudge letters from HMRC, warning them that they may not have declared all their rental income.
Review Request
A request to review past tax returns and correct any errors
Penalty Warning
A warning about potential penalties for non-disclosure
Response Deadline
A deadline to respond before a full investigation begins
Important: Do not ignore these letters!
Doing nothing could result in large backdated tax bills, penalties, and even prosecution.
10-200%
Penalty Range
10% to 100% of unpaid tax (or up to 200% for offshore income)
20 Years
Backdated Tax Bills
HMRC can go back up to 20 years for deliberate concealment
Interest Charges
Interest charges accumulate on all unpaid tax
Criminal Investigation
In serious cases, prosecution and criminal records
The best way to reduce these risks is to act before HMRC contacts you.
Notify HMRC, calculate what you owe, and make payment within 90 days. This gives you reduced penalties and peace of mind.
Review all types of rental income:
We help landlords prepare full Let Property Campaign disclosures. We offer competitive, fixed-fee quotes so you know the cost upfront.
If you've not yet registered, we can do this free of charge for landlords.
HMRC is actively investigating landlords in 2025 using data from banks, online platforms, and the Land Registry. If you have undeclared rental income, coming forward voluntarily is always better than waiting to be caught.
Confidential advice • Fixed-fee support • Property tax experts
Need help disclosing rental income? Our expert team at Taxwise Accountancy can guide you through every step. From calculating your tax liability to submitting a full disclosure to HMRC, we provide confidential advice and fixed-fee support.