If you caught my last blog – Significant Activity from HMRC Affecting Landlords and Property Owners – you will be aware that HMRC is continuing its crack down on landlords and property owners with undeclared rental income.
Be under no illusion, HMRC knows who to target and is routinely writing to landlords and property owners where they do not believe that the rental income declared in their tax return is in line with the number of properties owned. If you fear you fall under this category, you may be at risk.
The good news is that we still have a window of opportunity in that HMRC is effectively offering landlords an amnesty, known as the Let Property Campaign. The purpose of this campaign is to give landlords the opportunity to clear their slate and bring their tax affairs up to date by offering reduced fines or interest for those who come forward.
To take part, you simply need to notify HMRC, you will then be given three months to disclose any undeclared rental income and calculate the outstanding tax you owe. Whilst this is a great opportunity, I do recommend that if you are considering getting in touch with HMRC, you approach this cautiously and seek professional advice in order to keep your tax liability to a minimum and negotiate the best possible terms.
I am unsure how long the Let Property Campaign will be available to landlords; therefore, if you have not declared rental income in the past, I recommend you seek advice now, before it is too late. Once this campaign ends, I expect HMRC will not be as understanding and landlords may be subject to court cases and harsher fines.
If you would like to discuss your personal circumstances in confidence, please call me on 020 8418 2671 or email me at email@example.com and I will be happy to talk you through your options.