Undeclared Rental Income

The Let Property Campaign, similar to other voluntary tax disclosure opportunities, is designed to encourage landlords with undisclosed rental income to come forward and regularise their tax affairs on favourable terms. With the correct professional advice, lower penalties and affordable payment plans can often be negotiated. 

HMRC Let Property Campaign

Promoted Let Property Campaign Letter

HMRC are actively targetting landlords who they know have undeclared rental income with a 'prompted' Let Property Campaign letter.

In 2014, around 40,000 landlords who failed to come forward voluntarily were sent a 'promoted disclosure' letter.

The latest batch of letters sent around 20 February 2016 largely targets non-resident landlords. The letter provides landlords a 30 day window to make contact, and then a further three months to regularise their tax affairs.

Penalty for Not Declaring Rental Income

The rate of penalties will vary depending on your individual circumstances and whether you made a 'unprompted' or a 'prompted' disclosure. Interest will be charged from the date the tax is due till the date it is actually paid. Incorrect or incomplete disclosures may also attract higher penalties. 

Let Property Campaign Deadline

No specific deadline has yet been announced to make a disclosure under the Let Property Campaign. Similar tax disclosure facilities such as the Liechtenstein Disclosure Facility have come to an abrupt end. HMRC then uses the information they hold to target those who should have made a disclosure but failed to do so. Those with undeclared rental income should make a voluntary disclosure as soon as possible to settle on the most favourable terms. 

Over £50 million recovered so far

HM Revenue and Customs has raised £50 million in additional tax as a result of a crackdown on landlords who have undeclared, or under-declared, rental income.

Why Jeffreys Henry LLP?

Confidential advice - Contact us

For further information, or to arrange a free, confidential consultation, please telephone Ian Leigh or Paul Williams (ex-HMRC Inspector) on 020 7309 2222.