HMRC are aware that 1 in 3 landlords are not declaring their rental income.
The HMRC Let Property Campaign gives landlords an opportunity to bring their tax affairs up to date by way of making a voluntary disclosure and gives them the best possible terms to pay any tax outstanding.
HMRC have sourced their information from all manner of data including letting agents and the land registry and there really is nowhere to hide. They say: ‘HMRC is comparing data it holds about landlords with information individuals have declared on their Self-Assessment tax returns’.
Jason, tax manager at Evans & Partners says: ‘It is not a case of ‘if’ HMRC catch up with you, but ‘when’ and anyone choosing not to disclose under the campaign can face high penalties of up to 100% of the tax they owe and criminal prosecution.’
HMRC have already started writing to people who own second properties enquiring if they have any income undeclared and we have had quite a number of clients asking us for help.
It could be that you believe that your mortgage repayments and repairs exceed any income you receive. However, should you have a repayment mortgage not all of this can be offset against your rental income.
Other types of rentals include:
- Renting out a single property
- Renting out multiple properties
- Specialist landlords, eg: student lets or workforce rentals
- Renting out a room/rooms in your home
- Living abroad and renting out a property in the UK
- Living in the UK and renting a property abroad
- Renting out your holiday home
At Evans & Partners our specialist landlord accountant has dealt with many cases since the campaign opened and importantly we appreciate that every case is unique. We can notify HMRC on your behalf that you would like to disclose under the campaign and will make full disclosure with a formal offer on your behalf.
We have successfully helped many people to put their tax affairs in order through the Let Property scheme and other HMRC schemes avoiding them receiving onerous penalty payments and indeed criminal investigation.
To discuss your requirements further please give us a call on 0117 9675215 or email email@example.com. We will be happy to help.