A landlord’s guide to HMRC’s Let Property Campaign
The Let Property Campaign is an initiative designed by HM Revenue & Customs (HMRC) designed for landlords who may have undeclared income from letting out residential property, whether in the UK or abroad.
This campaign offers a chance to disclose unpaid tax, ensuring compliance and reducing potential penalties.
With Self Assessment deadlines approaching, this campaign is a good reminder for landlords to put their tax affairs in order.
What is the Let Property Campaign?
The Let Property Campaign allows landlords with undisclosed rental income to notify HMRC and pay any outstanding tax due.
Once you have notified HMRC, you have 90 days to calculate and pay what you owe.
If HMRC discovers unpaid tax later, penalties could be significantly higher, and, in some cases, you may face criminal prosecution.
Who needs to make a disclosure?
The campaign covers various rental scenarios, including:
- Letting out a single property or multiple properties
- Renting out a room exceeding the Rent a Room Scheme threshold
- Holiday lettings
- Renting out property while living abroad for more than six months
- Letting an inherited property
Notably, this campaign does not cover non-residential properties, such as shops or garages, or income declared on behalf of a company or trust.
How to disclose your rental income
If you believe you owe tax on rental income, the first step is to notify HMRC of your intention to disclose.
HMRC will then provide a unique disclosure reference number and a 90 day window for you to calculate and pay your tax liability.
You will need detailed records of rental income and allowable expenses for each relevant year.
Our team can help if you are unsure how to calculate these amounts, or if you have incomplete records.
Correctly calculated disclosures, complete with the appropriate penalties and interest, will go a long way to ensuring HMRC accepts your submission.
Why it is important to act now
Disclosing through the Let Property Campaign provides certain advantages, including reduced penalties for voluntary disclosure and a streamlined process with HMRC.
By coming forward voluntarily, you will avoid the risk of higher penalties associated with non-compliance, and HMRC won’t publish your details on their list of deliberate defaulters if you complete your disclosure fully and accurately.
The Let Property Campaign is a valuable opportunity for landlords to rectify past tax oversights, particularly if these were due to misunderstandings about tax obligations.
However, given the complexities involved, especially with calculating tax liability over multiple years, professional advice is highly recommended.
Our team is here to guide you through the process, ensuring that you meet all HMRC requirements.
Contact us today to see how we can help you with your Self Assessment and make sure your tax affairs are in order.
