By Andy Noton
HM Revenue & Customs’ Let Property Campaign is clamping down on undisclosed income.
The Let Property Campaign has given buy-to-let and private landlords the chance to get their tax affairs in order and make the most of an amnesty with affordable payment options.
Figures released by HMRC show that by 31 January this year, the campaign had generated over £20 million of revenue.
The extra tax is being recovered thanks to a range of different sources including local authorities, the Electoral Roll and the Land Registry. Last year HMRC enlisted estate agents by sending statutory notices demanding the details of all rents collected on behalf of their clients.
If a landlord receives a prompt for payment before they have made any voluntary contributions then HMRC will classify the case differently, and the landlord will not receive the same lenient repayment terms as they would under the Let Property Campaign. Last year around 40,000 landlords received a notification, which gave them just 30 days to make contact with HMRC and make changes to their tax affairs.
For those who have yet to declare income from rental properties, it is essential that you seek professional advice. You’ll only be able to benefit from the lower penalties and more lenient payment plans if you actively take part in the Let Property Campaign. Those who don’t volunteer the information will run the risk of prosecutions, and penalties of up to 200% of the tax due.
For specific property tax advice, or if you have a question about property tax compliance or any other property accountancy matter, please do get in touch: 020 7490 7766 or email me.