If you are a landlord who has received rental income in relation to a residential property, you should disclose this income to HMRC annually on a self-assessment tax return.
The Let Property Campaign allows individuals who have not previously declared their rental income to make a full disclosure to HMRC and settle any tax due.
Once you apply to make a disclosure under the let property campaign, you will have 90 days to calculate the tax due to HMRC and to submit your disclosure. Payment of any overdue tax and penalties will be due by the same date.
The way rental profits are calculated has changed over the years; it is important to ensure you engage a tax adviser who can calculate your rental profits in line with the legislation and minimise your liabilities as far as possible.
If you chose not to disclose your rental income, it is possible that HMRC may launch an enquiry or investigation into your tax affairs. If HMRC later prompt you into making a disclosure, the penalty rate applicable may be far higher than if you voluntarily disclose your rental income under The Let Property Campaign.
If you would like a greater understanding of how the Let Property Campaign applies to landlords in the UK, please refer to our article, Landlords: Here’s What You Need to Know About the Let Property Campaign.
Bracey’s have dealt with a number of Let Property Campaign disclosures since 2013. We can guide you through the whole process from notification, through to settling any tax due. We will go through the calculation of rental profits, work out the interest and penalties due and put together your formal disclosure, which will be submitted to HMRC.
Once your affairs have been brought up to date, we can also prepare your annual self-assessment tax returns to ensure you remain compliant.
We offer a free 30-minute consultation to gain an understanding of your situation and advise on how we can assist you.
