Let Property Campaign – HMRC Rental income disclosures

Do you have previously undeclared rental income to disclose? If so, now is a great time to clear up your affairs and draw a line under the past.  HMRC are currently operating an amnesty called the Let Property Campaign whereby the penalties and fines are greatly reduced for people who come forward and declare any previously undisclosed rental profits.

Whilst in the past many people may have got away with not declaring rental income, HMRC have been tasked with tackling tax evasion and are now using a wide range of resources to identify landlords who aren’t paying tax.  HMRC agents are scouring property portals, the Land Registry and the Tenancy Deposit Schemes to identify landlords who haven’t been fully declaring income.  In some circumstances HMRC have the power to look back at 20 years of property rental income.  In short the net is closing in and it’s only a matter of time before HMRC approaches you.

Why should I come forward?

If you bury your head in the sand, the fines can be up to 200% of the unpaid tax, plus interest and in extreme cases a criminal prosecution.  By coming forward under the Let Property Campaign, fines can normally be reduced to a maximum of 20% and in certain cases there will not be a fine.  The Let Property Campaign presents a window of opportunity to clear matters up on the very best terms.

Do I have to pay tax?

You have to pay tax on ANY rental profits, whether the profit is £1 or £100,000.  A lot of people make the mistake of assuming they have not made profit on their rent because their outgoings exceed the money coming in.  However it’s important to note that your profit for tax purposes is not simply money in minus money out.  Certain costs are not allowable for tax purposes e.g. neither the capital repayment element of a mortgage (only the interest part is) nor the cost of buying furniture are allowable in working out your rental profit.

HMRC expect you to have sought professional advice and ignorance is not seen as an excuse for not declaring or paying tax.  If you’re not sure what you need to do then please give us a ring.

What next?

Landstar Accountancy are Chartered Accountants who specialise in the property sector and have vast experience in disclosing rental profits to HMRC. We will always leave no stone unturned in minimising your liabilities and settling with HMRC on the very best terms for you. Get in touch now to find out more about the process and how we can help you put things right…

Phone: 0203 3979 045

Email: contact@landstaraccountancy.co.uk

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