Time is running out for Landlords to declare their tax liability via the Let Property campaign run by HMRC, allowing cut price penalties to those that disclose they have additional rental income.
HMRC estimate that there are 1.63m private landlords in the Uk but only 500,000 of them regularly file tax returns. They are now targeting the ones that do not declare their income and have used information requested from estate agents, mortgage lenders, and local authorities to compile a list of tax avoiders.
They will be writing to these individuals soon and have said that if they have to chase people to declare their rental property income, they may face financial investigation going back up to 20 years.
The Let Property Campaign covers individual property investors who owe income tax or capital gains tax on buy to lets, houses in multiple occupation (HMOs) or holiday lets in the UK or overseas.
Helen Hollingsworth, MARLA Partner at Bramleys & Director of Lettings advises
"We have personal experience of this as HMRC have audited all our management portfolio. They have now extended the trial and will be pursuing more landlords now as far as we understand due to the number of landlords not disclosing their income. Those who contact HMRC beforehand should qualify for the lower penalties under the scheme."
"At Bramleys we have regular training on tax so we can keep you up to date on the recent changes and also can advise what are the deductible allowances for landlords. We also have a good relationship with local accountants who can tailor a service to meet our clients needs. Please get in touch with us to discuss your portfolio"