Let Property Campaign Letters – July 2018

Throughout July and August 2018 HMRC sent the huge batch of ‘Let Property Campaign’ letters to landlords and other buy-to-let investors with undeclared rental income. This wave of letters largely targets accidental landlords with 1 or two rental properties.

The ‘prompted letter’ provides landlords a 30 day window to make contact, and then a further three months to regularise their tax affairs. Those who do not take this opportunity risk being investigated under Code of Practice 8/9, face much higher penalties and the possibility of a criminal prosecution.

Let Property Campaign

The Let Property Campaign, launched in 2013, prompts landlords with undisclosed rental income to come forward and regularise their tax affairs.

Figures released by HMRC in 2017 show the Let Property Campaign has generated more than £135 million in unpaid tax, penalties and interest.

Sources of Information

HMRC rely on a wealth of available information to identify landlords who have not declared rental income.

HMRC’s state-of-the-art analytical computer system ‘Connect‘ draws on information from a range of government and corporate sources, including HM Land Registry and the Tenancy Deposit Scheme, to create a profile of each taxpayer’s total income.

Letting agents have also been sent statutory notices demanding details of rents collected on behalf of private landlords. An initial fine of £300 applies to those agents failing to meet the initial deadline, with a potential further fine of £60 per day for ongoing failure.

INTRODUCTORY MEETING

CONTACT US TO ARRANGE AN INTRODUCTORY MEETING, OR FOR A QUOTE.

IAN LEIGH

Tax Partner

Ian is a Chartered Accountant who has specialised in tax since 1985. Ian advises owner managed businesses, public companies, private clients and trusts on the broad range of taxes and has extensive experience of international tax, domicile and residence issues. Ian also has significant experience in dealing with HMRC tax investigations and disputes including Section 9A enquires, the Worldwide Disclosure Facility Code of Practice 9 and the Contractual Disclosure Facility.

ANDREW LEWIS

Tax Manager

Andrew manages the firms personal tax department, including a portfolio of personal tax clients such as High Net Worth Individuals, Self Employed, Directors, Landlords, Non-Residents and Partnerships. Andrew also has significant experience in dealing with HMRC tax investigations and disputes including Section 9A enquires, the Worldwide Disclosure Facility (WDF), Code of Practice 9 and the Contractual Disclosure Facility.