HMRC’s Let Property Campaign recoups £42 million in unpaid tax
Over 16,000 landlords took advantage of the disclosure facility after receiving a ‘Prompted Letter’ from HMRC encouraging them to come forward under the Let Property Campaign.
The ‘prompted letter’ provides landlords with undeclared rental income a 30-day window to make contact, and then a further 3 months to regularise their tax affairs.
Those who DO NOT take this opportunity risk being investigated under Code of Practice 8/9, facing much higher penalties (potentially up to 200% of any tax due) and the possibility of a criminal prosecution.
HOW HMRC IDENTIFY LANDLORDS?
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.
According to the data released by HMRC, the highest concentration with landlords with undeclared rental is Birmingham, with Leicester ranking second. South East London ranks as London’s top spot.
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.
YOUR SPECIALIST TAX TEAM
For further information, or to arrange a free introductory meeting,
please contact Paul Williams (ex-HMRC)
or Ian Leigh
on 02073092222.
Paul Williams
Paul has 35 years of experience in tax starting at HMRC. Paul provides specialist advice to private individuals under an HMRC tax investigation or those wishing to make a voluntary disclosure.
Ian Leigh
Ian is a Chartered Accountant who has specialised in tax since 1985. He advises on tax investigations and has helped many clients resolve their tax position using HMRC disclosure facilities.
