I have been renting out a house for several years but have never told HMRC.

The first thing you’d need to consider is if any tax is due on the undeclared income and what reporting obligations you have.

HMRC says that you must tell them if your income from property rental is between £1,000 and £2,500 a year. To work this out, you can add up your total income from your property and deduct any allowable expenses - for example, maintenance and repair costs.

You must report your rental income on a Self-Assessment tax return if it’s:

• £2,500 to £9,999 after allowable expenses
• £10,000 or more before allowable expenses

If we assume you do have tax to pay on the undeclared rental income, then you will need to declare this and HMRC may charge you penalties and interest.

You may be eligible for the HMRC Let Property Campaign which provides the opportunity to come forward and disclose rental income- in exchange for the best possible terms from HMRC.

We are well-versed in assisting landlords with their Let Property Campaign disclosures and can help you get your affairs up to date and liaise with HMRC on your behalf. If you would like to discuss this further please contact us on 0131 665 0771 or use our simple online form to arrange a free initial consultation.

Date published 20 Aug 2021 | Last updated 23 Aug 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.