If you earn income from residential property, now is the time to review your tax position.
You may have missed rental income on a tax return. You may have made an error. If so, HMRC‘s Let Property Campaign gives you the chance to put things right.
The campaign allows landlords to voluntarily disclose undeclared rental income and settle any tax due.
By coming forward before HMRC contacts you, you can often reduce penalties and reach a quicker resolution.
Who Is the Campaign For?
The Let Property Campaign is aimed at individual landlords who have not fully reported their rental income to HMRC.
This may include income from:
- Buy-to-let properties
- Holiday lets
- Inherited properties
- Renting out a room in your home
- UK property owned while living overseas
The campaign does not apply to limited companies, trusts or commercial property lettings.
What Should You Do if You Have Undeclared Rental Income?
If you discover an error, you should notify HMRC of your intention to make a disclosure.
HMRC will issue a reference number. You then have 90 days to calculate and disclose the tax due.
You must also include any interest and penalties that apply.
The amount owed depends on your circumstances. It also depends on how long the issue has existed and whether the error was accidental or deliberate.
Why Should You Act Now?
HMRC now receives more information about landlords and rental income than ever before.
This makes it easier for them to identify undeclared income.
If HMRC discovers the issue first, they may charge higher penalties.
In serious cases, they may also take further enforcement action.
Making a voluntary disclosure usually leads to a better outcome. HMRC generally views voluntary disclosures more favourably than issues they uncover themselves.
It can also help resolve matters more quickly and with lower penalties.
How Cobble Can Help
Working out historic rental income, allowable expenses, interest and potential penalties can be complex, particularly if records are incomplete or several tax years are involved.
Our team can help you understand your position, calculate any liabilities, prepare the disclosure, and deal with HMRC on your behalf. We can also advise on keeping your property tax affairs compliant going forward.
If you’re concerned that rental income may not have been declared correctly, get in touch with Cobble for a confidential conversation. We’ll help you understand your options and guide you through the process from start to finish.