HMRC’s Let Property Campaign
Imagine, hypothetically of course, that you own a property which is rented out, but you inadvertently overlooked your responsibility to pay tax on the rental income you’ve been receiving. What would you do?
Do you:
A: Panic, do your best to cover up your error and live in fear of HMRC for evermore.
OR
B: Speak to the experts at Ellacott Morris who would advise you to explore HMRC’s Let Property Campaign, enabling you to correct your error and pay the correct tax on any undisclosed rental income.
Of course – you’d choose B! So, let’s find out more about this offering from HMRC…
The Let Property Campaign was introduced in August 2013 as a type of amnesty for landlords, allowing those in tax arrears from residential property rental income, in the UK or abroad, to voluntarily amend their miscalculations or oversights, receiving reduced penalties for doing so.
It is a campaign that is available to all residential property landlords whether they own one or multiple rental properties. It covers those with student or workforce rentals and holiday lettings. It also includes those receiving an income from renting a room in their own home that exceeds the Rent a Room Scheme threshold. Even if you live abroad or intend to live abroad for than 6 months, renting out your UK property, the campaign still applies as UK taxes may still be payable.
This is a residential property campaign only though and does not apply to commercial landlords, or if residential rental income is being received on behalf of a company or trust.
HMRC provides a handy Let Property Questionnaire at http://www.hmrc.gov.uk/tools/let-property-campaign/question1.htm?WT.mc_id=govuk_letproperty1 which enables you to ascertain your position and establish if you owe taxes that can be paid through this campaign.
Often tax miscalculations or oversights can be genuine mistakes, and therefore this is a great solution offered by HMRC to remove the fear of unpaid taxes and penalties. By opting for full and voluntary disclosure, you can usually expect a lower penalty and if payment is unaffordable at that time, a Time to Pay payment plan could be instigated.
You can find out more about the campaign at https://www.gov.uk/government/publications/let-property-campaign-your-guide-to-making-a-disclosure/let-property-campaign-your-guide-to-making-a-disclosure or contact us to speak to one of our tax experts. Whether your tax query relates to rental income or anything else, we will be able to help.
Let’s talk tax…
