Undeclared rent? Put it right before HMRC finds it

Don't ignore it, and don't send HMRC a guess. Work out when the letting started and what you received. Then take advice before you make contact, because the route you use and the way you present the facts both affect the penalty. For most landlords with residential lets, the Let Property Campaign is the usual route. Coming forward before HMRC contacts you gives the best chance of a lower penalty.

No. A nudge letter says HMRC holds information suggesting you may have rental income or gains you haven't fully reported, and invites you to check your position and put it right. It isn't a formal enquiry. But it does mean HMRC is already looking, so HMRC will normally treat any disclosure you make afterwards as prompted, not unprompted. Reply by the date shown, and get advice before you do.

No. HMRC's campaign is for individual landlords letting residential property. Disclosures for a company or a trust, and for non-residential property such as shops or garages, go through a different route. If a company owns the properties, the position is a corporation tax one, with its own time limits and penalties. Tell us who owns each property and we'll confirm the right route.

Both can be covered. Undeclared rent is income tax. If you sold a let property and didn't report the gain, that is capital gains tax, and residential sales now need a report and payment within 60 days of completion. The Let Property Campaign can include unreported gains. It's worth listing every sale in the years you cover, because missing one can undo the disclosure.

Most landlords who come forward are dealt with by a civil settlement: tax, interest and a penalty. Criminal investigation is for serious fraud, and HMRC usually offers a separate route, Code of Practice 9, in those cases. HMRC says that if you accept it and make a full and accurate disclosure, it will not use its criminal powers to investigate what you disclose. If you think your position might be that serious, speak to an adviser before contacting HMRC.

Within limits. The penalty range is set by law and depends on your behaviour and whether the disclosure was prompted. Inside that range, HMRC reduces the penalty for how much you tell, help and give access to your records. A clear, complete and early disclosure carries the most weight. A late, partial or evasive one carries the least. The aim is the lowest penalty the facts support.

Not if your gross property income was £1,000 or less in the tax year and you didn't need to report it. The property allowance can then cover it in full. Above £1,000, the position changes, and the allowance can be used instead of deducting actual costs. Rent-a-room relief is a separate allowance for letting a room in your own home. Check the figures year by year before you assume nothing is owed.

Yes. UK property income is taxable in the UK wherever you live, and many non-resident landlords have had agents deduct nothing, or have never filed. The Let Property Campaign covers UK property let by landlords living abroad. If you also have overseas property or income, other routes and longer time limits can apply, and the penalties can be higher. See our page for non-resident landlords.