HMRC has published a new consultation on proposals to change how property income information is reported to it by letting agents and tenancy deposit scheme providers. The aim is to improve the quality, consistency and timeliness of data, helping HMRC identify landlords who may not be declaring rental income and supporting its digital tax services. The consultation runs until 20 January 2027.

Under the current notice-based regime, letting agents and tenancy deposit schemes provide property income data annually, linked to the tax year. The proposals would introduce new standard reporting obligations for letting agents acting for UK-based landlords with UK residential properties, and authorised tenancy deposit protection schemes. Reporting would cover individual landlords, companies, partnerships and trusts, with no minimum income threshold. Certain exclusions would apply, including landlords covered by the Non-Resident Landlord Scheme as there is already a requirement to report a landlord’s property income and to pay withheld tax to HMRC.

HMRC is considering requiring information to be reported monthly or quarterly, rather than annually, with submission deadlines potentially reduced from the current 60 days to one month, two weeks or even less after the end of each reporting period. The government acknowledges that shorter deadlines may create administrative challenges for data holders.

Letting agents and tenancy deposit scheme providers could also be required to collect and report additional information, including landlords' National Insurance numbers, company registration numbers or Unique Taxpayer References, together with other details such as gross rental income, tenancy start and end dates and property management fees.