PROMPTED LET PROPERTY CAMPAIGN LETTER
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.
WHO CAN USE THE LET PROPERTY CAMPAIGN
The Let Property Campaign is open to all residential property landlords with undisclosed rental income. This includes:
- Landlords with multiple properties
- Accidental landlords with single rental properties
- Holiday lettings
- renting out a room in your main home for more than the Rent a Room Scheme threshold
- Non Resident Landlords who live abroad or intend to live abroad for more than 6 months and rent out a property in the UK
PENALTIES 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 £42 MILLION RECOVERED in 2018-19
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.
HOW JEFFREYS HENRY LLP CAN HELP YOU
- As one of the UK leading firms of Chartered Accountants and Tax Advisers, we have significant experience in dealing with voluntary tax disclosures and tax investigations
- Paul Williams (ex-HMRC) and his team can advise on the the best strategy to adopt
- Minimise potential penalties and interest
- Negotiate affordable repayment terms
- Cost effective, fixed and capped fee arrangements
- One of the UK’s leading property tax specialists and property accountants – we act for 100’s of BTL landlords, property developers, construction firms and one of the UK’s largest housing association
- Featured in Property Industry Eye, Letting Agent Today, Property Hawk and Landlord Zone
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.
