NEWS HMRC’s Let Property Campaign
student rentals or anyone renting a room in their home.
Landlords renting out commercial properties are not eligible to take part in this campaign.
Many landlords believe that as their rental income only covers their mortgage payments that they are not making a profit, and therefore do not have to declare their rental income to HMRC.
What a lot of people do not realise is that only the interest element of a mortgage is an allowable expense.
Many people have invested in the property market due to the low returns on other investments, as well as low interest rates on mortgages.
The income derived from rental property is taxable, unfortunately many people have failed to notify to HM Revenue & Customs (HMRC) and HMRC are now targeting landlords who they believe to owe tax on this rental income.
HMRC have several ways in which they can find landlords with undeclared income. They are now using the land registry as well as the electoral register.
We have had several landlords contact us recently after receiving letters from HMRC regarding undeclared rental income.
The let property campaign is an opportunity for landlords to disclose their undeclared rental income to HMRC.
The penalties for non-disclosure under this campaign are significantly lower than if HMRC discover the undeclared income themselves.
The campaign includes all residential property landlords. This includes landlords with one, or many properties, those with holiday lettings,
MPharm Students Present Work at RPS Conference
Say you charge rent of £1,000 per month and have monthly mortgage payments of £1,000 you may believe that you are not making a profit.
However, if the interest part of the mortgage is £600, then you are making a profit of £400 per month.
This equates to £4,800 over a year, assuming that you are a basic rate taxpayer this would equate to £960 of tax payable.
If you do not use the let property campaign to disclose this underpaid tax to HMRC the penalty can be 100% of the unpaid tax.
Assuming the property was let for 5 years this would equate to tax of
£4,800 plus penalties of £4,800. Interest would also be due on the late tax.
If you disclose this income under the let property campaign the penalties are between 0% and 20%, so a maximum of £960. This represents a saving of £3,840 in penalties.
It is possible for HMRC to collect unpaid tax for the past 20 years if you have failed to register for self- assessment by the appropriate deadline, or if you deliberately misled HMRC about your income.
Once a disclosure is made to HMRC you will have three months to pay any tax due. However it may be possible to agree a payment plan with HMRC.
This campaign together with the recent changes to tax relief for buy to let properties mean that is more important than ever to seek professional advice.
Here at Muldoon and Co we have significant experience in dealing with disclosures to HMRC. n
For independent, professional advice, contact Robbie Barr on 028 9032 5050 or email
Robbie@muldoonaccountants.co.uk Muldoon & Co Chartered Accountants, 16 Mount Charles, Belfast BT7 1NZ.
Payments should be transparent
The majority of Pharmacists, Doctors, Nurses and Hospital Specialists believe that payments received by healthcare professionals (HCPs) from pharmaceutical companies should be transparent, according to a survey by leading research consultancy ComRes.
Three MPharm graduates from Queen’s School of Pharmacy have presented their work at the Royal Pharmaceutical Society (RPS) Conference in Birmingham in September 2015.
The RPS Annual Conference is a leading cross sector pharmacy conference in the UK; it explores pertinent issues that are relevant to industry, community, hospital, academia and education.
Deirdre Duffy presented research relating to over-the-counter medicines,
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pharmacyinfocus.co.uk
Emma McDonald presented research on social media and Jia Wern (Carmen) Lee discussed pre-registration peer mentoring of undergraduate pharmacy students.
The students thanked their academic supervisors, Dr Maurice Hall and Dr Lezley-Anne Hanna, as well the Director of Education for the MPharm course, Dr Sharon Haughey, for the support they received while undertaking and publishing their work.
According to the poll of more than 500 HCPs, carried out on behalf of the ABPI, 87% of those questioned agree that payments from pharmaceutical companies to individually named healthcare professionals should be transparent.
Seven out of ten (69%*) with a current relationship with one or more pharmaceutical companies say that they have given or are likely to give permission for pharmaceutical companies they work with to disclose their payment information.
The survey results come as pharmaceutical companies prepare to
disclose details of payments and other transfers of value they have made to individual HCPs and healthcare organisations (HCOs) during 2015 on a publicly accessible, searchable database hosted on the ABPI's website in June 2016.
The industry-led disclosure initiative is part of a Europe-wide programme to further improve transparency regarding the relationships between pharmaceutical companies and HCPs and HCOs.
Not everyone agrees – the survey revealed that one third (32%) of those questioned feel it is unnecessary to declare payments from pharmaceutical companies to individually named HCPs, and one quarter (26%) believe that declaring these payments will adversely affect medical innovation, although these are in a minority.
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