A very common assumption I hear from Landlords is:
“HMRC have never contacted me, so I assumed everything was fine.”
Unfortunately, that assumption causes many people to fall out of compliance without realising it.
Not receiving a letter from HMRC does not mean:
- a Tax Return wasn’t required
- Rental income didn’t need declaring
- HMRC are unaware of the property
Here’s why.
🎥 If you prefer to watch rather than read, this video explains why HMRC silence does not mean rental income is fine — and what you should do instead.
You can continue reading the full written guide below.
1. HMRC Do Not Automatically Contact Everyone
HMRC do not proactively write to every Landlord.
In many cases:
- HMRC only contact someone after data mismatches appear
- letters are triggered by information received later
- some people are contacted years after rental activity started
Silence from HMRC is not confirmation of compliance.
2. HMRC Expect You to Notify Them
Under UK Tax rules, it is the Taxpayer’s responsibility to:
- register for Self Assessment when required
- declare rental income
- file a Tax Return by the deadline
HMRC do not need to ask first.
If rental income exists, the obligation exists — regardless of whether HMRC have written to you.
3. Why People Assume “No Letter = No Problem”
This misunderstanding often happens where:
- Someone is employed under PAYE
- only one Property is rented
- the Rent is modest
- the property makes a loss
- a Letting agent is involved
- the Property was inherited
In most cases, there was no intent to avoid Tax — just a misunderstanding of the process.
This assumption is particularly common for people employed under PAYE, which I cover in more detail in my guide Employed Under PAYE but Own a Rental Property? Why HMRC Still Expect a Tax Return (UK 2025).
4. How HMRC Actually Identify Rental Income
HMRC increasingly rely on data rather than letters.
They receive information from:
- Letting agents
- Mortgage lenders
- Councils and licensing registers
- Rental platforms
- Land Registry data
Where rental activity exists but no Return is filed, that mismatch can trigger HMRC contact later.
HMRC increasingly rely on third-party data rather than letters, which I explain in more detail in my guide on How HMRC Know You’re Renting Out Your Property
5. What Happens When HMRC Do Get in Touch
HMRC often start with:
- a “Nudge letter”
- a request to check your position
- a prompt to register for Self Assessment
At this stage, matters can often be resolved calmly.
If ignored, HMRC may:
- review earlier years
- open a Compliance check
- apply Penalties and Interest
6. Does Making a Loss Change Anything?
No.
Even if your rental property makes a loss, HMRC may still expect:
- rental income to be reported
- losses to be recorded correctly
This is a very common reason people believe no action was required.
Even where a rental property makes a loss, a Tax Return may still be required, which I explain in my guide on Rental Property Losses – Do You Still Need a Tax Return?
7. What If You’ve Been Renting for Years Without Filing?
This is more common than people realise.
In many cases:
- the position can still be corrected
- penalties may be reduced
- matters can be resolved without escalation
The key is addressing it before HMRC open a formal enquiry.
Final Word
Not hearing from HMRC does not mean everything is correct.
If you’ve been renting out a property and are unsure whether a Tax Return was required, it’s better to check now than assume silence means approval.
If you’d like professional help reviewing your position, you can book a paid diagnostic consultation with us to understand your next steps.