Notifications under the Let Property Campaign are continuing to flow through to taxpayers, this is where HMRC believe that rental income has not been correctly reported through Self-Assessment.

Where does HMRC get its information from?

Connect is the data analysing software used by HMRC which uses third party information such as:

• Bank accounts.
• Credit reference agencies.
• Credit and debit card accounts.
• Online payment providers.
• Land Registry.
• Property websites such as Zoopla and Rightmove.
• Google Street View.
• Council tax records.
• Electoral roll.
• Insurance companies.

Who can use this disclosure facility?

The Let Property Campaign is open to all residential property landlords with undisclosed taxes. This includes:

• those that have multiple properties.
• landlords with single rentals.
• specialist landlords with student or workforce rentals.
• holiday lettings.
• renting out a room in your main home for more than the Rent a Room Scheme threshold.
• those who live abroad or intend to live abroad for more than 6 months and rent out a property in the UK, as you may still be liable to UK taxes.

This campaign is not open to those landlords who are letting out non-residential properties such as a shop, garage or lock up. You also cannot use the Let Property Campaign if you want to disclose income on behalf of a company or a trust.

Why is it beneficial to approach HMRC before they contact you?

The penalty regime favours those who are deemed to be unprompted disclosers. With HMRC’s interest rate for late paid tax currently accruing at 7%, this is also an incentive to get in early.

How far back do I need to go?

If you registered for a Self Assessment tax return by the appropriate deadline, have taken care to make sure your tax affairs were correct but have still paid too little, you’ll only have to pay HMRC what you owe for a maximum of 4 years.

If you registered for a Self Assessment tax return by the appropriate deadline but you have paid too little because you were careless, you’ll have to pay HMRC what you owe for a maximum of 6 years.

If you failed to register for a Self Assessment tax return by the appropriate deadline you’ll have to pay HMRC what you owe for a maximum of 20 years.

If you have deliberately paid too little tax you’ll also have to pay HMRC what you owe for a maximum of 20 years. This is where you have:

• deliberately told HMRC you have earned less than stated.
• not told HMRC anything at all about your income.

Note in certain circumstances HMRC publish the details of those penalised for deliberately failing to disclose and pay.

How can we help?

We can help bring your tax affairs up-to-date, mitigating the liability where possible and negotiate the penalty position. Our advice is to start collating all the rental income and expenditure for each tax year 6th April – 5th April, along with your other income and tax based reliefs. If your records are incomplete you should make your best estimate of the undisclosed income. We can then run through these with you and prepare the disclosure pack.

What do I do if I cannot afford to pay what I owe?

If you cannot afford to pay what you owe in one lump sum, depending on your circumstances, you’ll be able to spread your payments Let Property Campaign – GOV.UK (www.gov.uk)

Don’t delay, get in touch today!