Are you a Property Landlord? If you are, please read on as Tyrrell & Company will be able to save you from a major headache.
Over the next 18 months, HMRC will be providing residential landlords with the chance to voluntarily disclose any rental income they have not declared and paid taxes on.
As part of the continuing fight against tax evasion, the Let Property Campaign is targeting landlords who owe tax and offering them a chance to declare and settle, including fines and penalties, with the taxman.
Fewer than 500,000 taxpayers are registered with HMRC as owning properties other than their home. Are you one of them? Current estimates state up to 1.5 million landlords, intentionally or accidentally, may be underpaying up to £500 million in taxes per year, hence the latest HMRC campaign. It’s big business for HMRC and they mean business!
The campaign targets specifically residential landlords, including:
- Single Property Rentals
- Multiple Property Rentals
- Student or Company/Work Lettings
- Holiday Rentals
Over the 18 month campaign, a period which may be extended, taxpayers can contact HMRC and voluntarily declare outstanding income. It is important that the taxpayer is the first to make contact, as HMRC will be using a database of property rental records to single out people thought to have not declared their full income. HMRC can cross-check taxpayers’ records with Land Registry data and, if it wishes to, can go on to request data from third parties such as letting agents. Banks are another source of information, as HMRC can ask for information about mortgages advanced to landlords. When asked, these organisations have to oblige.
By coming forward voluntarily, any penalty will be lower than fines/penalties imposed if the taxman makes the first contact (Up to 100 per cent of any tax determined plus possible prosecution).
Don’t wait until it’s too late. Contact us now for professional advice and let us take the headache away.