HMRC is consulting on plans requiring letting agents and tenancy deposit schemes to report rental income information more frequently, with proposals also covering landlords’ tax identifiers, rental expenses and tenancy details.
Landlords across the UK could face closer tax scrutiny under government proposals to require letting agents and tenancy deposit protection schemes to provide rental income information to HM Revenue and Customs (HMRC) on a regular basis.
The proposals would replace the current system, under which HMRC requests information from data holders through individual notices, with ongoing reporting obligations for specified organisations.
Published on 28 October 2026, the consultation considers whether rental income information should be reported monthly or quarterly, how quickly the information should be submitted and what additional details should be collected to help identify landlords and match income to the correct tax records.
The Government says the changes are intended to improve tax compliance, reduce errors and help landlords meet their tax obligations.
However, the proposals could also create additional administrative responsibilities for letting agents and tenancy deposit protection schemes.
The consultation remains open until 20 January 2027. The reporting frequency, deadlines and detailed requirements have not yet been finalised.
HMRC wants more frequent rental income reporting
Under the existing system, HMRC issues more than 10,000 notices annually to letting agents and tenancy deposit protection schemes to obtain information about rental income and tenancies.
Once a notice is issued, data holders have up to 60 days to provide the requested information. Depending on when the rental income is generated and when the request is made, HMRC says information can arrive more than 13 months after the underlying transaction.
The Government wants to move towards a system in which specified organisations submit agreed information regularly, without needing a separate request for each reporting period.
HMRC is considering monthly or quarterly reporting for both letting agents and tenancy deposit protection schemes.
It is also seeking views on how quickly information should be submitted after each reporting period ends. Options include reporting within one month, within two weeks or in less than two weeks.
The consultation does not establish a final reporting schedule. Instead, HMRC is asking businesses how frequently they could reasonably provide the information and what operational challenges shorter deadlines might create.
The proposed approach is intended to give HMRC more timely information about rental income, enabling it to identify possible tax discrepancies earlier.
Landlords’ tax identifiers could become part of reporting
Another proposal would require letting agents and tenancy deposit protection schemes to collect and report additional information to help HMRC identify landlords accurately.
Potential identifiers include:
- National Insurance numbers for individual landlords.
- Company registration numbers for businesses.
- Unique Taxpayer References (UTRs).
- Other information needed to match rental income with the correct taxpayer.
HMRC says that names and addresses alone do not always allow information to be matched reliably to individual tax records.
The Government therefore wants to improve the quality of the information supplied by third parties and reduce the risk of rental income being linked to the wrong person or business.
For existing clients, organisations could be required to make reasonable efforts to obtain missing identifiers. The consultation is seeking views on what would be practical and proportionate for businesses to achieve.
This could mean contacting existing landlords to request additional information or updating customer records as part of routine account reviews.
The exact requirements and verification procedures will depend on the final design of the reporting framework.
Rental income, expenses and tenancy details under consideration
The consultation also asks whether HMRC should receive additional information beyond basic rental income records.
Potential data fields include gross rental income, management fees, allowable expenses, tenancy start and end dates, dates of birth and property identifiers.
Collecting more detailed information could help HMRC compare rental income records with tax returns and identify cases where landlords may have omitted taxable income.
However, the Government is also considering the practical consequences for businesses that would have to collect, verify and submit the information.
Letting agents and deposit protection schemes vary considerably in size and technical capability. Larger organisations may already use systems that can produce structured digital reports, while smaller businesses could face additional software, staffing or administrative costs.
HMRC is therefore seeking evidence on how the new requirements could work alongside existing business processes and what support organisations would need to comply.
HMRC aims to identify undeclared rental income earlier
The proposed changes form part of the Government’s wider effort to modernise tax administration and improve its use of information supplied by third parties.
HMRC says incomplete records, difficulties matching information to taxpayer records and delays in receiving data can make it harder to identify potential non-compliance involving property income.
More regular reporting could help the tax authority identify people who may have taxable rental income but are not registered for Self Assessment when required.
It could also support more targeted reminders and digital prompts, helping landlords correct errors before they develop into larger tax problems.
The consultation also links the proposed improvements to Making Tax Digital for Income Tax, which is due to include landlords with qualifying income over £20,000 from April 2028.
HMRC believes more accurate third-party information could support landlords who use digital reporting services by helping them check whether their income records are complete.
The proposals do not mean that every discrepancy would automatically result in an investigation or penalty. HMRC says better-quality data would support tax administration, customer guidance and compliance activity.
Letting agents warn of additional administrative costs
The proposed reporting obligations could place new responsibilities on letting agents, including businesses that do not currently provide regular rental income data to HMRC.
Propertymark, which represents property professionals, has acknowledged the importance of accurate and timely tax reporting but has called for any new requirements to be proportionate and practical.
Its head of policy and campaigns, Timothy Douglas, told LandlordZONE that agents already operate in a heavily regulated environment and manage an increasing range of compliance responsibilities.
Douglas said any additional reporting requirements should work alongside existing agency practices, avoid unnecessary duplication and be workable for businesses.
Propertymark has said it will work with its members to respond to the consultation.
The Government has also acknowledged the need to consider implementation costs, technical requirements and the time businesses would need to adapt their systems.
The consultation asks for evidence on the costs of more frequent reporting, the adoption of standardised digital formats and the support needed to make the changes workable.
What happens next?
The consultation, published on 28 October 2026, closes on 20 January 2027.
HMRC is seeking responses from letting agents, tenancy deposit protection schemes, tax professionals, landlords, industry bodies and other interested parties.
Feedback will help inform decisions on reporting frequency, submission deadlines, the information that must be supplied and how the new obligations should be introduced.
The proposals form part of a wider legislative framework established by Schedule 23 of the Finance Act 2026, which provides for standing reporting obligations for specified categories of data holders.
The final requirements will depend on the detailed policy and implementation decisions that follow the consultation.
For landlords, the central issue is how the reforms could improve HMRC’s visibility of rental income and tax compliance.
For letting agents and deposit protection schemes, the main concern is how to meet any new reporting obligations without creating disproportionate costs or duplicating existing processes.
For now, monthly or quarterly reporting remains under consultation. Landlords and letting agents should not treat the proposed reporting frequency or deadlines as final requirements.
