How many years to include in your Let Property Campaign Disclosure
The question of how many years to go back depends on how and why things went wrong. The reasons for not declaring the income is important to determine how many years to go back and include the undeclared income in the disclosure.
- Why you have not previously told us about your undeclared rental income
- When you should have told us about your rental income
- Whether you made an error despite taking reasonable care, whether you were careless or it was something you did it deliberately
The question of how many years to include the Let Property Campaign also depends on the behaviour of the taxpayer:
- The disclosure can be limited to four years where an error has occurred despite reasonable care
- The disclosure can be limited to six years if the error is due to carelessness
- The disclosure needs to include the previous 20 years if the error is deliberate or the taxpayer failed to notify the liability to tax
Failure to notify HMRC
When you receive UK rental income, you should notify HMRC by 5 October following the end of the tax year in which the rental income was received. For example, if you started receiving your rental income in October 2023, the relevant tax year is 2023/24, which ended on 5 April 2024. In this example, you should notify HMRC by 5 October 2024 that you are receiving rental income.
If you have failed to notify HMRC that you receive rental income by the appropriate deadline, you will have to pay what you owe for a maximum of 20 years.
Reasonable Care
If you have taken reasonable care in filing your taxes, the disclosure will be limited to only four years, and you will pay unpaid taxes for these four years. Reasonable care means you registered for self-assessment tax returns by the relevant deadline and ensured that your tax affairs are correct but still not paid enough tax on your rental income. In such a case, you will pay tax for what you owe for four years.
Careless Error
If you registered by the appropriate deadline for a self-assessment tax return but haven’t paid enough taxes because you were careless, you will have to pay taxes you owe for the previous six years.
Deliberate
If you have deliberately paid too little tax, you will have to make a disclosure for your undeclared rental income for the previous 20 years.
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