Landlords and HMRC’s let property campaign
If you are a landlord and you are confident that your tax affairs are up to date and that all your rental income has been correctly declared, then all is well.
If you are a landlord and you think that you may not have made the correct disclosures to the taxman; then you may want to take action before the taxman comes knocking on your door!
Advances in technology coupled with the increase of powers available to the taxman have enabled him to access a whole heap of information regarding property transactions and property rentals across the UK. It may be a slow process but the taxman is now linking the information held, to property owners, and is making enquiries.
In the past, HMRC have successfully used campaigns to encourage voluntary disclosures from individuals for whom the taxman may have information about undisclosed tax liabilities.
One of the more recent disclosure campaigns is aimed at Landlords. The scheme covers more or less anyone who has received income from letting out a property, properties and even rooms in their main house (subject to certain exemptions).
So why volunteer a disclosure? Quite simply, to benefit from a more lenient settlement with HMRC than would be available if HMRC discover that you owe taxes and have not made a disclosure.
The taxman can charge penalties of up to 100% (200% for certain offshore liabilities) of the tax due for failing to notify a tax liability or for making an inaccurate return.
Under the let property campaign the taxman may agree to a much lower penalty, of say, 20% or less, and in some cases £nil.
At the moment there is no set time limit for someone to make a disclosure under the let property campaign, however, a delay in doing so could result in higher penalties.
You can of course make a disclosure directly to the taxman; however, we believe that we can offer you more. If you engage us to assist with your disclosure we will make sure that you claim all the appropriate deductions that you are entitled to, and ensure that you only pay the correct amount of tax; this will also help minimise any penalties charged. We explain and guide you through the whole process and deal with the taxman on your behalf to ensure that you get the best possible deal, and give you peace of mind that your tax affairs are brought fully up to date.
If you would like to discuss your particular circumstances in confidence, contact Paul Southward.