The longest-running of HMRC’s series of voluntary Tax Disclosure Campaigns is aimed at residential property landlords: The Let Property Campaign.
HM Revenue & Customs’ Campaigns are short-lived tailored voluntary disclosure opportunities aimed at specific groups of taxpayers. During the campaign window targeted taxpayers can make a full disclosure of tax irregularities using a simplified method, in return for a guarantee they will not be prosecuted – and will be charged reduced penalties.
Under The Let Property Campaign, landlords who rent out residential property, and fail to tell HM Revenue and Customs about all the rental income – whether through misunderstanding the rules or deliberate evasion – can come forward and put their tax affairs straight – before HMRC comes to them. The Campaign is open to all individual residential property landlords (not companies or trusts) – from those that have multiple properties, to single rentals, and from specialist landlords such as student or workforce rentals, to holiday lettings.
The Let Property Campaign has now been open for 4 years. So far 9,500 landlords have made disclosures.
Any landlord who may not have declared all their rental income could be contacted by HMRC at any time. They will not then be able to make use of the opportunity offered as part of this Campaign.
HMRC is already using information it holds about property rental in the UK and abroad, along with information already held on HMRC‘s digital intelligence system Connect, to identify people who have not paid what they owe. For those that fail to come forward, higher penalties – or even criminal prosecution – could follow.
The Taxman says that “By coming forward voluntarily, people will receive the best possible terms. Any penalty they pay by coming forward voluntarily will be lower than if HMRC comes to them first – which can be up to 100 per cent of the tax due and a possible criminal prosecution”.
How can Lynam Disclosure Experts help me?
Lynam Tax partners have a vast amount of practical experience in managing tax investigations and tax enquiries. We can advise you on the best course of action and if appropriate, help you manage any necessary disclosures, in order to obtain the optimum outcome for you, your business and your family.
*For a free, private, no obligation consultation, call Paul Lynam today on 0845 643 9997
or Andrew Nutbrown on 07718 778710