HMRC are actively targeting landlords who they know have undeclared rental income with a ‘prompted’ Let Property Campaign letter.
Throughout July and August 2018 and again in 2019, 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 Let Property Campaign is open to all residential property landlords with undisclosed rental income. This includes:
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.
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.
An analysis of HMRC data has revealed over £42 million has been recovered from landlords with undeclared rental income in 2018-19, double the £21 million recorded in 2017-18.
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 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.