Let Property Campaign
HMRC is closing in on undeclared lettings income, so if you’re a landlord then HMRC are urging you to come clean, or risk higher penalties.
There is an estimated one million buy-to-let and other private landlords who are not declaring their rental income, which has left the revenue on a trail of finding the £550m missing tax.
HMRC understand that in some cases landlords are not trying to cheat the system and it is a genuine mistake. Those landlords who come forward voluntarily will still have to pay a penalty of up to 20%- plus the tax and interest- but this compares with penalties of up to 100%, and even the possibility of prosecution.
To encourage landlords to come forward HMRC is running a Let Property Campaign. You can report previously undisclosed taxes on rental income under this campaign if you’re an individual landlord renting out residential property.
This includes you if you’re:
Renting out a single property.
Renting out multiple properties.
A specialist landlord, e.g. student or workforce rentals.
Renting out a room in your main home for more than £4250 year or £2125 a year if letting the property jointly, i.e. above the Rent a Room Scheme.
Living abroad and renting out a property in the UK.
Living in the UK and renting a property abroad.
Renting out a holiday home even if you use it yourself.
If you owe tax on your letting income you’ll need to tell HMRC about the income you haven’t declared by making a voluntary disclosure. You can fill in a notification form or call the Let Property Campaign helpline on 03000 514 479. You’ll then have 3 months to calculate and pay what you owe.
If you don’t make a voluntary disclosure now and HMRC finds out later, you could get higher penalties and face criminal prosecution.
If you are a landlord and would like to discuss this further then please get in contact and we can help you with this. Please call 01257 255521 for more information. Let CMA help you take the pain!