HMRC are actively targeting landlords who they know have undeclared rental income with a Prompted Let Property Campaign letter.
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.
He 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.
Senior Tax Manager (ex-HMRC)