Will HMRC know I have a UK property I rent out?
I see plenty of mentions on Internet forums of people getting letters from HMRC and surprised HMRC found out they have a property they are renting out. I suggest they should not be surprised:
- there are already many data sources such as Council Tax records where HMRC can see who is paying for where - and ask questions;
- if you are using AirBNB or similar, they have to tell HMRC your income;
- if you upset your tenant they may well "drop you in" with HMRC; and
- the new rental rules in the UK are introducing a national database of landlords. Of course, HMRC will use it.
If you are a UK resident OR an overseas resident with UK property you need to declare property income in the UK - for France you declare it here too but firstly declare in the UK.
We can help if you have forgotten - and it is always better to tell HMRC vs them coming to you and threatening penalties.
