HMRC’s Property Let Campaign is an ongoing drive to identify landlords who have undeclared rental income or errors in their property tax returns. It isn’t new, but HMRC has scaled up the campaign again in 2025 using better data-matching tools, including information from letting agents, deposit schemes, holiday-let platforms, Airbnb, council records, and even overseas property data.

If you rent out a property in the UK or abroad, the campaign applies to you — whether you’re a single-property landlord or running a full portfolio.

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What Is the Property Let Campaign?

The campaign gives landlords a chance to come forward voluntarily and correct their tax affairs before HMRC contacts them. Coming forward first usually means lower penalties, flexible payment options, and a quicker resolution.

If HMRC contacts you before you declare, penalties are higher and investigations can become lengthy and stressful.

The campaign covers:

• Buy-to-let properties
• HMOs
• Single rooms under the Rent-a-Room scheme
• Airbnb and holiday lets
• Overseas Holiday Lets
• Properties owned personally
• Accidental landlords (inherited homes, temporary lets, etc.)

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Why Has HMRC Increased Checks in 2025?

HMRC’s technology now links:

• Letting agent returns
• Land Registry data
• Council licensing databases
• Airbnb and booking platform income
• Deposit protection schemes
• Mortgage lender statements

If figures don’t match what you’ve declared, the system flags you automatically. This leads to an enquiry unless the landlord comes forward first through the campaign.

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Should You Be Worried?

Only if:

• You’ve not declared rental income
• You claimed incorrect expenses
• You didn’t declare Airbnb / holiday-let income
• You lived abroad and didn’t file a UK return
• You incorporated a portfolio incorrectly
• You have unpaid tax from previous years

If everything is correct, there is nothing to worry about. But many landlords accidentally under-declare because of allowable expense rules, interest restrictions, or misunderstanding the difference between revenue vs capital costs.

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How the Disclosure Process Works

1. Notify HMRC that you want to use the Property Let Campaign.
2. HMRC gives you 90 days to calculate and disclose everything.
3. You submit:
   • undeclared rental income
   • corrected expenses
   • capital allowances where applicable
   • interest restriction adjustments
   • late years not previously filed
4. You pay the tax, interest, and reduced penalty.

Penalties can be as low as 10%, depending on behaviour and whether mistakes were careless or deliberate.

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What Happens If You Ignore It?

If HMRC contacts you first:

• Penalties usually increase to up to 30–50% for careless errors.
• For deliberate under-declaration, penalties can reach up to 100%.
• HMRC may review bank statements, Land Registry records, agent statements, Airbnb payouts, foreign property income, etc.
• An enquiry can continue for months or years.

It’s always cheaper and safer to come forward voluntarily.

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Common Issues We See with Landlords

At Taxes Done Right, the most frequent issues include:

• Claiming full mortgage interest instead of post-Section 24 treatment
• Not declaring Airbnb income
• Claiming capital improvements as repairs
• Not filing SA returns when rent was under £2,500
• Incorrect joint-owner income splits without Form 17 declaration
• Overseas property income not declared
• Rent-a-Room used incorrectly
• Personal vs LTD company cost allocation errors

Most problems are genuine mistakes — and the campaign is designed to fix them cleanly.

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How Taxes Done Right Can Help

We can:

• Review your entire rental history
• Calculate correct income and allowable expenses
• Prepare a full HMRC disclosure
• Negotiate reduced penalties
• Assist with incorporating your properties if beneficial
• Plan future tax efficiency so issues don’t repeat

Many disclosures are resolved smoothly if handled professionally.

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Conclusion

The HMRC Property Let Campaign is not something to ignore. For landlords with undeclared income or uncertain tax positions, making a voluntary disclosure is the safest and most cost-effective option.

If you’re unsure, want a check-up, or need to correct past years, we can help you put everything right before HMRC contacts you.