As part of an ongoing commitment to reduce tax evasion and avoidance, HMRC are targeting residential landlords. The let property campaign is aimed at landlords who might owe tax due to a misunderstanding of their obligations or intentional evasion, and is giving them the opportunity to inform HMRC of unpaid tax on rental income as well as pay any amounts owed, including penalties and interest.
So far, no closing date has been announced for the campaign and it is thought that it will run for at least 18 months. The campaign is aimed at a large number of taxpayers so the opportunity to come forward voluntarily about unpaid taxes will be open throughout the campaign to ensure the maximum number of people come forward. According to the HMRC website, the campaign is not designed to be punitive but to help people to bring their tax affairs up to date, keep them that way, and stop them getting it wrong in the first place.
The campaign does not discriminate between residential landlords who let multiple properties and those who rent a single property, and aims to include specialist landlords such as those who rent student or holiday accommodation.
Those landlords who own unpaid taxes and don’t come forward will be identified through information that the HMRC already holds about property rental in the UK and abroad, as well as information gathered by their intelligence system Connect. Those who deliberately avoid paying will face higher penalties and the threat of prosecution. Custodial sentences have been handed out of up to two years and seven been have already been convicted.
If you are a landlord looking for assistance with the disclosure process or if you are looking for additional information please call 0161 832 4841 or email firstname.lastname@example.org