In October 2023, HMRC commenced targeting residential landlords in its latest ‘nudge campaign’ to property owners who they suspect are not declaring rental income on owned properties.

These nudge letters are widely targeted at individuals or business based on information received, primarily from other governmental departments, banks or in some cases the tenancy deposit scheme.

These tend to include a statement saying that HMRC has received relevant information, suggesting the landlord review their tax position. The actions the tax payer takes, is different for every individual, so we advise seeking professional help. A Certificate of Tax Position will be sent with the letter; as there is no de-minimis provision, vigilance is advised as there are substantial repercussions for filing a false declaration. The completion of the certificate is not advised, but taxpayers are still required to reply to the letter before the 40-day cut off date and send it to HMRC.

HUSA Accountants advise landlords who have received such letters to review their tax position and identify if any disclosures are needed. If the landlord ignores the letter and if it is later found that tax is due, it may lead to an investigation and potentially a criminal prosecution.

HUSA Can Help

At HUSA Accountants, we have experience in dealing with late or undeclared disclosure of property rental income. We can help you declare your rental income and mitigate the number of penalties that could be levied by HMRC for late disclosure.