Landlords in the UK have collectively paid £104 million in taxes as a result of HMRC’s intensified efforts to recover unpaid liabilities. This marks the third consecutive year that HMRC has exceeded the £100 million threshold from voluntary disclosures made through the Let Property scheme, reflecting the agency’s improved ability to track down landlords who are not fulfilling their tax obligations.
Why Are Landlords Paying More?
According to a recent Freedom of Information request by Price Bailey, the number of voluntary disclosures made by landlords to HMRC surged to 11,511 in the 2025/26 tax year. This is the highest figure recorded since 2018/19, indicating that more landlords are coming forward to declare unpaid tax liabilities. However, the average tax recovered per disclosure has decreased to £9,063, down from £13,713 the previous year.
How Is HMRC Identifying Non-Compliant Landlords?
HMRC is increasingly utilising Land Registry data to identify landlords who own multiple residential properties and may have undeclared rental income. This proactive approach is part of a broader strategy to ensure compliance and to encourage landlords to voluntarily disclose any unpaid taxes before facing penalties.
What This Means for Landlords
For landlords, this situation underscores the importance of maintaining accurate tax records and ensuring compliance with tax obligations. The rise in voluntary disclosures suggests that landlords are becoming more aware of their responsibilities, but it also highlights the risk of penalties for those who remain non-compliant. Landlords should consider reviewing their tax affairs and may benefit from consulting with tax professionals to avoid future liabilities.
Frequently Asked Questions
What should landlords do if they have unpaid taxes?
Landlords with unpaid taxes should consider voluntarily disclosing their liabilities to HMRC to avoid penalties. Consulting with a tax advisor can provide guidance on the best course of action.
How can landlords ensure compliance with tax regulations?
Landlords can ensure compliance by keeping accurate records of rental income and expenses, regularly reviewing their tax obligations, and seeking professional advice when needed.