Tax opportunity for landlords to put their house in order
Landlords who rent out residential property and fail to tell HM Revenue and Customs (HMRC)about all the rental income, are being off ered the chance to come forward and put their tax aff airs straight – before HMRC comes to them
Under HMRC’s new Let Property Campaign, landlords who may owe tax – whether through misunderstanding the rules or deliberate evasion – can come forward and tell HMRC about any unpaid tax on rents, and pay what they owe, including penalties and interest.
The campaign is open to all residential property landlords – from those who have multiple properties, to single properties and from specialist landlords such as students or workforce rentals to holiday lettings. HMRC will be working with a variety of bodies over the next few months to develop the tools and guidance to support landlords of all types and help them get their aff airs up to date.
HMRC has started issuing letters to landlords they believe have omitted income from their tax return – Extracts from letters issued are….
“We have information that you are receiving or have been receiving rental income. Although I have traced a Self Assessment record for you……… there are no records to show that you are declaring rental income for tax purposes
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If you have failed to notify HM Revenue and Customs of a source of income and additional tax is due then penalties may be chargeable…….. These penalties can be as much as 100% of the Income Tax due”
We feel that it is important to draw everyone’s attention to the fact that it is not “if” they catch up with you but “when”. This latest campaign is expected to be open for the next 18 months.
“Sales of second properties or let properties” is a campaign which closed in September and the results are yet to be published. However this follow up campaign suggest HMRC expect to reap rich rewards from property rentals.
Building on the success of previous campaigns HMRC plan to recoup up to £500m in annual unpaid tax from the 1.5 million landlords it is aware of not declaring their rental income. Recent publications show that HMRC are aware that 1 in 3 landlords do not declare rental income.
More help is available for landlords by
calling HMRC Let Property Campaign Hotline on 03000 514 479 or contact The A9 Partnership Limited who would be able to assist.
Kindly provided by
The A9 Partnership Limited, Dunblane 01786 822 066
To advertise in thewire t. 07720 429 613 e.
the.wire@btinternet.com
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