HMRC plans for letting agents and deposit schemes to report landlords' rental income: what the consultation means for you

HMRC is consulting until 11:59pm on 20 January 2027 on a standing duty for letting agents and tenancy deposit schemes to report UK-based landlords' rental income monthly or quarterly, with tax identifiers attached, in place of today's annual spreadsheets. The duties would sit with agents and schemes, not landlords; here is what HMRC would receive about you, who is covered, the numbers on a typical flat and what to do, alongside our property tax guide for investors.

What changed

HMRC proposes a standing duty on letting agents and tenancy deposit schemes to report landlords' rental income monthly or quarterly, in place of the annual spreadsheets it collects today by serving notices; the consultation closes at 11:59pm on 20 January 2027 and is one of the Budget 2026 tax-related documents, a Budget-day consultation rather than a Budget measure.

Today's returns are requested notice by notice, more than 10,000 times a year, under what the consultation's annex calls "The data-gathering powers of Schedule 23 of Finance Act 2011"; the proposed standing duty would rest on Schedule 23 of the Finance Act 2026, with the detail in regulations to come.

The duty would fall on letting agents acting for UK-based landlords of UK residential property and on authorised tenancy deposit protection schemes. They would collect and report tax identifiers, which may include a National Insurance number (NINO) for an individual landlord, a company registration number (CRN) for a company, a VAT number where applicable and a Unique Taxpayer Reference (UTR) for partnerships, trustees, estates and non-resident landlords without a NINO or CRN.

The proposals are "expected primarily to impact letting agents and tenancy deposit protection schemes", and the government recognises they create "new obligations for a large and varied population of letting agents"; for a landlord, what changes is that HMRC would see gross rent and fees, tagged to a tax identifier, within a month, two weeks or less of the period end, depending on the option chosen.

Who it affects

The proposals cover letting agents and tenancy deposit schemes acting for landlords of UK residential property, with no de minimis threshold, and all landlord types: individuals, companies, partnerships and trusts.

Companies could be reported under their CRN, so if you are buying through a limited company the data is matched to the company, not you; trusts could be reported under a UTR, with beneficial ownership among the fields under consultation.

Non-resident landlords: letting agents acting for a landlord whose usual place of abode is outside the UK are excluded because they already withhold tax and report under the Non-resident Landlord Scheme; deposit schemes are not excluded.

Letting agents and deposit schemes carry the duty, the identifier checks and the cost; question 17 asks what costs and system changes would arise and which proposals would be disproportionately burdensome.

Context: from 6 April 2027 property income for individuals in England, Wales and Northern Ireland is to be taxed at 24%, 44% and 49%, to be legislated in Finance Bill 2026-27, so a mismatch costs more from 2027-28. Take professional tax advice on your own position.

What it means in numbers

On the £180,000 apartment let at £1,050 a month in our buy-to-let investment guide, an agent's return could carry gross rent of £12,600 a year and the management fee, and those are the figures your Self Assessment property pages must match.

Example (illustrative, not a forecast or a real deal; the 12% fee is an illustration, not a Quartico fee):

Property values and rental income can fall, and returns are not guaranteed.

HMRC's Let Property Campaign guide, for individual landlords only, sets out the downside for undeclared rent: a look-back of four years if you registered on time and took care, six if you were careless, and 20 if you failed to register for Self Assessment or acted deliberately, with most people paying a maximum of six. Penalties run up to 100% of the tax (200% offshore), usually lower for a voluntary disclosure; if HMRC finds out first, the guide warns of higher penalties or criminal prosecution.

For scale, HMRC estimates the new property rates will cost around 5% of taxpayers an average £225 a year in 2027-28 and reach 2.4 million landlords by 2031-32; six years' tax on undeclared rent plus a penalty of up to 100% is a different order of cost. This is not tax advice: speak to an accountant or tax adviser.

What to do and by when

Respond if the duty would land on your business; otherwise reconcile your statements now and have your tax identifier ready.

• By 11:59pm on 20 January 2027: email your response to the 19 questions to thirdpartydata@hmrc.gov.uk.
• By 11:59pm on 31 January 2027, when the 2025-26 return and payment are due: reconcile your agent's statements (gross rent, fees, expenses) with your property pages first.
• When your agent or deposit scheme asks: give your NINO (individuals), CRN (companies) or UTR (partnerships and trusts) once, correctly.
• Undeclared rental income: speak to an adviser about the Let Property Campaign before the standing returns start.
• Making Tax Digital: qualifying income over £50,000 (2024-25) meant 6 April 2026; over £30,000 (2025-26) means 6 April 2027; over £20,000 (2026-27) means 6 April 2028.

If your property is managed, the agent carries the duty and the checks; see our lettings and property management page, and take professional advice before acting.

Contains public sector information licensed under the Open Government Licence v3.0.

By Paul Wyatt · Reviewed by David Jacobs · Published 8 November 2026