HMRC are now targeting another trade where they think there are unpaid tax revenues with the let property campaign.
In the past they have targeted plumbers, market traders, doctors, fitness coaches and online traders. This has resulted in £100’s of millions in extra revenue.
What is it?
The Let Property campaign is allowing landlords to make voluntary disclosures of any undeclared property income with promises of the best possible terms for payment of tax.
Who needs to disclose?
Any individual who has undeclared income for the following types of property –
• renting out a single property
• renting out multiple properties
• a specialist landlord, eg student or workforce rentals
• renting out a room in your main home for more than £4,250 a year or £2,125 a year if letting the property jointly, ie above the Rent a Room Scheme threshold
• living abroad and renting out a property in the UK
• living in the UK and renting a property abroad
• renting out a holiday home even if you use it yourself
Companies, trusts and commercial landlords are excluded from this disclosure.
What happens if I don’t disclose?
HMRC say they’re targeting residential landlords for tax evasion and are going to use records such as land registry documents and the electoral poll to find possible suspects.
They have also threatened higher penalties and criminal prosecution for non-compliance.
What can I do?
Anyone who needs to make a disclosure is advised to contact our Chorley accountants first so that we can ensure you pay the least amount of tax possible whilst arranging payment plans, if needed, on your behalf.