One of the most common things I hear from landlords is:
“It was only for a short time, so I didn’t think HMRC would be concerned.”
Unfortunately, that assumption causes more problems than almost anything else I see with rental income.
Whether a property was rented for a few months or several years, HMRC’s expectations are broadly the same.
Duration affects how much tax may be due — not whether the income needs to be reported.
This guide explains:
- why short-term renting still matters to HMRC
- where landlords commonly go wrong
- and what to do if you’re now unsure about your position
This applies whether you:
- rented out a former home
- let a property temporarily
- worked under PAYE while renting
- or never intended to become a landlord at all
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In this video, I explain why renting a property for a short time still matters to HMRC, where landlords commonly go wrong, and what to do if you’re now unsure about your position. Video is live tomorrow
1. Short-Term Renting Still Counts as Rental Income
HMRC do not distinguish between:
- “temporary” renting
- “accidental” renting
- or “long-term” renting
If rent was received, it is rental income.
This applies even if:
- the rent only covered the mortgage
- the property was let while you were between moves
- the arrangement lasted a few months
- you planned to sell or move back in
From HMRC’s perspective, the key question is simple:
Did rental income exist?
If the answer is yes, HMRC expect it to be declared.
2. Why Landlords Assume Short-Term Means No Reporting
Most landlords who make this mistake aren’t trying to avoid tax.
The usual reasons are:
- the rental period felt “too short” to matter
- no tax was owed after expenses
- HMRC never contacted them at the time
- they assumed PAYE covered everything
Not hearing from HMRC straight away often reinforces that assumption — but silence is not approval.
HMRC checks are usually retrospective, not real-time.
This delayed contact often causes confusion and anxiety. I explain why HMRC often contact landlords years later — and what that delay usually means — in more detail in my guide on Why HMRC Contact Landlords Years Later (And What To Do).
3. PAYE Does Not Cover Rental Income
This catches a lot of people out.
If you’re taxed through PAYE, it’s easy to assume HMRC already know about all your income.
They don’t.
PAYE covers:
- employment income
It does not automatically cover:
- rental income
- property profits or losses
When HMRC see employment income alongside evidence of property ownership or rental activity, they often check whether anything is missing.
This misunderstanding is especially common for people taxed through PAYE who also own rental property.
I cover this in more detail in my guide for Employed Under PAYE but Own a Rental Property? What You Need to Know
4. Losses and Low Profit Do Not Remove Reporting Duties
Another common assumption is:
“I made a loss, so there was nothing to report.”
That’s not how HMRC view it.
Even where a rental property makes a loss:
- the income still needs to be declared
- expenses must be calculated properly
- losses need to be recorded to carry forward
Failing to report means:
- losses are lost
- HMRC see a mismatch if rental activity is identified later
5. Why HMRC Often Discover Short-Term Rentals Later
HMRC receive information from multiple sources over time, including:
- letting agents
- councils and licensing schemes
- lenders
- rental platforms
One source alone may not trigger action.
But when information builds up and doesn’t match what’s been declared, HMRC may raise questions — sometimes years after the rental ended.
This is why many landlords are surprised to hear from HMRC long after they stopped renting.
HMRC checks into rental income are usually driven by data rather than suspicion. I explain what HMRC typically look at first in my guide on What HMRC Check First When You Own a Rental Property
6. What to Do If You Rented Briefly and Didn’t Declare It
If you rented a property for a short period and are now unsure whether it was declared correctly:
- don’t panic
- don’t ignore it
- don’t assume it’s too late
HMRC have established processes for bringing rental income up to date, even where several years are involved.
Handled properly, many cases are resolved without unnecessary stress or escalation.
Where rental income hasn’t been declared at all — or was only partially reported — HMRC have specific routes for bringing matters up to date.
I explain these options in my guide on Fixing Undeclared Rental Income – Your Options Explained
Next Step
If you rented a property briefly — whether intentionally or by circumstance — and you’re unsure whether your rental income was declared correctly, professional advice can help you clarify your position before issues escalate.
If you’d like professional help reviewing your position, you can book a paid diagnostic consultation with us to understand your next steps.