HMRC runs several campaigns each year targeted at particular tax risks and taxpayer sectors. Campaigns are opportunities for particular groups, businesses and professionals to voluntarily disclose any undeclared income where a tax liability is due. HMRC has run many disclosure campaigns in the past and few of them are still open such as Second Income, Credit Cards Sales and the Let Property Campaign.
The Let Property Campaign is specifically aimed at residential property landlords with undeclared or undisclosed rental property income. It is an opportunity for landlords who owe tax through letting out residential property, in the UK or abroad, to get up to date with their tax affairs in a simple way and take advantage of the best possible terms.
Landlords who have failed to register with HMRC, or who have under-declared or underpaid tax, risk being checked by HMRC. If they wait for that to happen, they will not be able to sort out their tax affairs under the best terms.
To get the best terms, the landlord must tell HMRC that they want to take part by filing in a notification form or calling the Let Property Campaign helpline. They then have three months to calculate and pay what they owe.
The Scope of the Let Property Campaign
The Let Property Campaign is an opportunity open to all residential landlords with undisclosed tax liabilities.
This includes:
- Those that have multiple properties
- Landlords with single rentals
- Specialist landlords with student or workforce rentals
- Holiday lettings
- Deal with all the correspondence and answer your taxation queries
- Renting out a room in your main home for more than the Rent a Room Scheme Threshold
- This campaign is not available to those landlords who are letting out non residential properties such as shops, garages etc.
How to take part in the Let Property Campaign?
To take part in the Let Property Campaign you should:
- Tell HMRC that you want to take part in the Let Property Campaign
- Tell HMRC about all income, gains and taxes which you haven’t previously disclosed
- Make a formal offer
- Pay what you owe
- Help HMRC as much as you can if they ask you for more information
The Let Property Campaign is still on-going. Landlords intending to come forward but are delaying, risk higher penalties if they are subject to an enquiry and they have not already notified an intention to disclose.
The Let Property Campaign offers the best possible terms available to get your tax affairs in order. You can take advantage of these by notifying your intention to participate and cooperating with HMRC to make a full disclosure and payment.
How would HMRC know that I have been renting a property?
HMRC receives information from different sources such as letting agents, land register, local councils and DWP. These sources of information related to taxpayers can identify the price you paid for the property, the number of properties you own, and the number of rented properties. Due to the connectivity of HMRC receiving information from various sources, HMRC’s system will flag areas where tax is potentially owed.
Also, HMRC sometimes receives letters from disgruntled neighbours, tenants or ex spouses notifying them about the undeclared rental income. This can also result in investigations being started by HMRC.
Have you received a letter from the HMRC Let Property Campaign?
If you have received a letter from HMRC under the Let Property Campaign, please get in touch as soon as possible to speak with one our landlord tax specialists. They would be able to advise you the best course of action in such circumstances.
I haven’t received a letter from HMRC under the Let Property Campaign, what happens if I do not come forward?
If you are in receipt of income from residential rental property, you should not wait for HMRC to send you a letter. Anybody who voluntarily makes a disclosure under the Let Property Campaign without receiving a letter will have more favourable terms of disclosure in comparison to those who have received the letter. Our advice would be to be proactive in this matter and notify HMRC first. This way your disclosure will become unprompted and the percentage of penalty on the unpaid tax will be much lower.
I received the letter from HMRC under Let Property Campaign but I am making a loss on rental property, what should I do?
You must respond to the letter whether your property is making a profit or loss. In such circumstances, please contact our experts to discuss your tax affairs in more detail and they will advise you on the best course of action.
How Martax Accountants can help you with your Let Property Campaign Disclosure?
We can make your Let Property Campaign Disclosure easy and hassle free whilst ensuring that you pay the right amount of taxes.
1. We will set you up on our system and register you as our client with HMRC. This will allow us to act on your behalf, dealing with HMRC from start to finish.
2. We will discuss in detail all your tax affairs including your undeclared rental income, ensuring we include all allowable expenses or reliefs that could help minimise your tax liability.
3. We will notify HMRC and prepare a reply to the Let Property Campaign letter that you have intentions to make a full disclosure.
4. We will prepare a full disclosure of your undeclared rental income and expenses, calculate any unpaid tax liabilities and penalties offered under the Let Property Campaign disclosure.
5. We will make a formal offer to HMRC on your behalf of the tax liability due.
To discuss your tax affairs in relation to the HMRC Let Property Campaign with our experienced landlord tax specialist in complete confidence please call us on 0208 1911 340 or fill out our Contact Us form. Please read our real life case study on: HMRC Let Property Campaign Voluntary Disclosure.Disclaimer
The information provided by Martax Accountants is general in nature and does not constitute specific tax advice. Professional advice should be sought before deciding on a course of action, or refraining from a certain action, arising from the above information.
