The Moment You Realise You Forgot to Declare Rental Income (And What Happens Next)

There’s a very particular kind of sinking feeling that comes when you realise something isn’t quite right with your taxes. Your stomach drops, your mind starts racing, and suddenly the “I’ll sort that later” thoughts turn into “Oh no… what do I do now?”

This is exactly what happened to someone who recently reached out to us. They had been renting out a property for a few years, and it genuinely hadn’t crossed their mind that the income needed to be declared to HMRC. Life got busy, the rent payments just became part of the month-to-month routine, and it all felt very normal. It wasn’t until they saw something online about “undeclared rental income” that the panic set in.

And that panic is so common.

The truth is, many people don’t realise they need to declare rental income. Some think their earnings are too small, some assume their letting agent automatically deals with it, and some simply didn’t know the rules to begin with. There’s no judgement here — tax isn’t always straightforward, and no one teaches this 'you may need to know this in later life' kind of stuff in school.

But the moment you do realise is usually a stressful one. People imagine the worst — huge fines, investigations, letters, consequences. Anxiety takes over. Sleep becomes difficult. The monster under the bed grows teeth and claws.

This is where we tell you something very important.

You can fix this.

And the outcome is almost always much better if you take action sooner rather than later.

That’s where we come in. At The Tax Faculty, we help people in exactly this situation every single week. We guide you through the disclosure process, calculate what needs to be paid, and most importantly — we communicate with HMRC on your behalf. You don’t have to make awkward phone calls or explain yourself alone. We handle it calmly, professionally and without judgement.

When people hear this from us, the relief is instant. We can hear it in their voices. Everything becomes manageable again.

And here’s the other thing no one tells you: HMRC are generally far more understanding when someone voluntarily comes forward before they are contacted. It shows goodwill and honesty — and that can reduce penalties significantly. Doing nothing and hoping it goes away is the only route that usually makes things worse.

If you’re reading this because you’ve just had that “oh no” moment — take a deep breath. You’re not the first, you’re not the worst, and you’re certainly not alone. We’ve seen this situation many times, and we know exactly how to put things right.

So whether you've received a letter from HMRC regarding undeclared rental income or think you may need to make a disclosure, start by getting in touch with us. A simple conversation can remove weeks — or even months — of anxiety.

We’ve helped others. We’ll help you too.

#TheTaxFaculty #RentalIncome #HMRCDisclosure #TaxHelp #LandlordSupport #TaxAdvice #DoingTheRightThing #HereToHelp #PeaceOfMind

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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