Let Property Campaign – Time To Catch Up?
HMRC have announced that, over the last two years, over £50million has been collected in back taxes following the success of it’s Let Property Campaign.
The campaign, which is ongoing and gives residential landlords an opportunity to bring their tax affairs up to date on more favourable terms, has become one of HMRC’s most successful voluntary disclosure schemes. The aim is not just to collect taxes but to also educate landlords on the criteria for declaring rental income and offer advice going forward.
Since its launch in 2013, over 10,000 landlords have come forward to voluntarily disclose previously undeclared income and take advantage of the 3 month waiting time allowed to calculate and pay the correct amount of tax. Penalties are much lower than they would normally be.
The campaign covers individual landlords who let out residential property either in UK or abroad, and includes single or multiple lets, holiday and student accommodation, as well as lodgers paying over the rent-a-room allowance of 4,250. Companies or Trusts do not qualify and neither do commercial lets.
If you have undeclared income for residential lettings, you should consider taking advantage of this campaign to bring yourself up to date. Remember – HMRC can use their powers to obtain information about lettings in the UK and abroad, and if they discover you have withheld details, you will be liable to much higher penalties and possible criminal prosecution.
If you are unsure whether the income you have received should be declared and whether you can do so under the Let Property Campaign, please contact us for help and advice.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
