What is Let Property Campaign?
HMRC’s Let Property Campaign gives an opportunity to landlords to bring their tax affairs up to date.Let property campaign is basically for the property landlords who have failed to disclose rental income.
Let property campaign:A Voluntary disclosure:
The landlords are supposed to tell HM Revenue and Customs (HMRC) about the income they haven’t declared so far by making a voluntary disclosure.
Furthermore, to get the best possible terms, they must tell HMRC that they wish to take part in property campaign. They’ll then have 90 days to calculate and pay what they owe.
Who can do this:
The let property campaign is applied to all residential property landlords those who
- have multiple properties
- are single rentals
- specialist landlords such as student or workforce rentals
- do holiday lettings
- live abroad and renting out a property in the UK
- reside in the UK and renting a property abroad
- rent out a room in main home for more than the Rent a Room Scheme threshold
Who are exempted:
Let property campaign does not apply to companies or trusts. It does apply to non-resident landlords.
How to disclose rental income:
Landlords have to read the guidance on making a disclosure and disclose income to HMRC. They’’ll need a Government Gateway account through let property campaign.
SO, they can use a calculator to help them work out what they owe. There’s a different calculator if they need to tell HMRC about more than 7 years of unpaid tax.
Call the helpline:
If someone need more time to pay, must call the helpline before 90-day deadline.
HMRC: A support for landlords:
HMRC have worked with a variety of bodies to develop tools and guidance to support landlords. However, they wants to help them get their affairs up to date.
Hence, landlords should declare all rent from letting out a residential property or holiday home for income tax purposes. Telling them is simple and straightforward.
How HMRC will target landlords:
Since,HMRC is targeting tax evasion by residential landlords. They’ll use information they have about property rental in the UK and abroad.
In addition, they will use other information they hold on customers to identify people who might not have paid what they owe.
If landlords don’t make a voluntary disclosure now and HMRC finds out later, they could get higher penalties or face criminal prosecution.
See also care4properties.
Please contact the careaccountancy help line for specialist help in making a disclosure or any other tax matter.