Set up by HMRC many years ago, the Let Property Campaign is a long-running disclosure opportunity aimed at residential property landlords who need to bring their tax affairs up to date. It allows individuals to disclose undeclared income from previous tax years. In exchange, HMRC will limit the penalties that could be imposed if they were to “discover” you.
If you have not declared your rental income you should urgently come forward and do so. Otherwise, the penalties could be crippling and serious.
How would HMRC know about my undeclared rental income?
Think about it. When you buy a property you create a record at Land Registry. Then there is a footprint with letting agents, local authorities for council tax, mortgage applications and utility companies. And of course Tip-offs.
HMRC gets data from all of these sources and they are not secretive about it. See what they say about some of the ways they obtain information here.
HMRC’s sophisticated Connect system has the ability to analyse the data and flag taxpayers who do not appear to have paid the correct amount of tax. This powerful tool enables HMRC to frequently write to taxpayers and invite them to use the Let Property Campaign to bring their affairs up to date.
Why you should use the Let Property Campaign
HMRC targets compliance activity where they will get the most return. And as we know landlords are an easy target. Once they have the information they need they will write to landlords who they consider may not have declared all their rental income.
This will then involve HMRC carrying out compliance checks or enquiries to resolve matters. You will not then be able to make use of the opportunity offered as part of the Let Property Campaign.
As property tax specialists we have handled numerous cases for clients successfully. We often reduce the penalty to a small percentage you might otherwise have paid.
If you’re worried about approaching HMRC and need to speak to someone get in touch. We are on your side and can guide you through to a successful conclusion contact us on 01902 711370 for a free confidential consultation or drop us an email.