HMRC let property campaign

  • Second home or rental properties
  • HMRC taking a hard stance
  • 30 day deadline to respond

Michael Godsmark,

September 9, 2014

If you own a second home in the UK you need to pay attention to HMRC rules to make sure that you’re declaring all rental income.

This applies to income from holiday homes and buy-to-let property. It can even apply if you rent a room out to a friend.

The Let Property Campaign online information, is proving a valuable resource for anyone receiving rental income.

According to The Telegraph, letters are expected to be sent out to thousands to landlords with undeclared second properties. HMRC are looking to recover the shortfall to the treasury of potentially up to £500m – so it’s pretty important that you stay ahead and know where you stand.

 

What does the HMRC Let Property Campaign letter say?

The letters ask landlords to make contact within 30 days to make a declaration. It warns that failure to do so may result in large fines or even criminal prosecution.

 

Why are they only sending letters now?

The HMRC Let Property Campaign has been targeting property owners for over 3 years. It’s only recently however, that they have decided to take a tougher stance.

 

How can they find out who needs to pay?

The Government is using many different methods to find landlords that might be evading income tax. From the benefits system, to look closely into when Housing Benefit is being paid directly to landlords, to social media, to look for holiday home letting advertisements.

They can use this information to gain access to bank accounts to see what income has been received.

 

I’ve had a letter, what do I do?

If you receive one of these letters, the best thing you can do is speak to you Chorley accountant at Woodville to discuss your options. We’d firstly look to reduce any tax by claiming allowable expenses. Then we would speak to HMRC and negotiate a payment plan for any tax owing.

 

 

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About The Author

Michael is an enthusiastic and cheerful individual who, when not hard at work, enjoys mountain biking, cooking curry and travelling to new places.

   @https://twitter.com/WoodvilleAcc

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