If you have received a letter from HMRC or know already that you need to disclose your rental property income then let us take the headache away from you and use our expertise to help minimise your tax liability, interest and penalties.
The Let Property Campaign is HMRC's initiative to recover lost tax revenues from private landlords who have not made a disclosure about their rental income to them in the past.
HMRC are using new more effective measures to identify landlords who have let property but not declared it on their tax return. Those who they identify face having to pay back all of the tax they would of owed plus interest and penalty fines.
If you have received a letter from HMRC then you have to act promptly as there can be increased penalties and they have the power to bring criminal proceedings. If you have not received a letter you should consider making a let property disclosure as there will be less interest and penalties.
We can help you make your Let Property Campaign disclosure easy and hassle free whilst ensuring you only pay the right amount of tax. We give a full tax review on all of the years you did not declare, helping identify allowable expenses or reliefs that could help minimise your tax liability.
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We will take the time to talk with you about your circumstances, helping you understand the process and the financial implications of disclosing.
We will talk with you in detail about the rental income years in question to try and find all possible expenses or reliefs that could help to minimise your tax liability.
Our qualified accountants will conduct a full tax review of your financial information for every year you didn't declare your income.
They will then calculate the tax, interest and penalties for each year that you owe. They will discuss the total amount and payment options with you.
With your permission we will make a full disclosure to HMRC under the Let Property Campaign and help negotiate payment terms that suit you.
We will liase with HMRC for you and deal with all subsequent enquiries. We will also give you advice on ensuring you are compliant in future.
The Let Property Campaign is HMRC's initiative to recuperate lost tax revenues using new measures to identify private landlords that have not declared their rental income to them in the past 20 years.
Through deposit protection schemes, land registry lists and landlord’s insurance databases, HMRC are slowly but surely cross checking their tax records to identify anyone who hasn’t previously declared their rental income.
Once identified people are asked to "join" the campaign which will start the process of calculating your bill. Interest is applied to all money owed as well as penalties that can range up to 70% depending on the circumstances surrounding the claim.
If you make a voluntary disclosure to HMRC then we can negotiate much fairer penalties saving thousands of pounds in some cases!
If HMRC suspects that you have a rental property but can not see where it is declared then they will send you a letter detailing their suspicions.
Once you receive the letter there is a deadline of 30 days to which you must respond and either concede and "join" the Let Property Campaign or tell them they are mistaken. Once joined you are then given 3 months to calculate your tax and arrange payment.
If you do not act promptly when you have received a letter the penalties can be steep and in some cases they have the power to bring criminal proceedings.
Your total bill is calculated by working out the tax you would have owed for each year of undeclared income and then adding on interest (currently 3%/Year) and financial penalties.
To work out the tax owed, you have to calculate the profit/loss from each rental property which allows you to claim certain expenses and reliefs that will help to reduce your tax liability.
The calculated tax is then subject to an annual interest for the period of time that you have owed the tax. Penalties are then added at a rate determined by the circumstances of your disclosure.
The amount or percentage of penalties you may receive all depend on your situation surrounding the claim including whether you have received a letter or not from the HMRC or that you have acted within their time limits for paying.
The percentage rates below should be considered as a guideline:
With the reduced penalties on "unprompted" disclosures and the fact that HMRC are continually looking for new ways of finding people, it is good idea to start the process before you get a letter.
If you have not received a letter from HMRC but your circumstances fit any of the following then you should consider making a disclosure:
Yes, we would recommend disclosing as soon as possible. With the HMRC developing new ways to find undeclared rental income it is only a matter of time. You are treated much more preferably if you disclose before you have been sent a letter.
If you don't pay and HMRC finds out that you have purposefully not declared the income then you could be hit with penalties of up to 100% (200% if offshore property) of the unpaid tax and even a criminal prosecution.
The process depends what stage you are at, whether you have had a letter and whether you have the rental information ready.
If you have been sent a letter by the HMRC there is a deadline of 30 days to which you must respond and either "join" the Let Property Campaign or tell them they are mistaken. Once joined you are given 3 months to calculate your tax and arrange payment.
Not under the Let Property Campaign - This campaign isn’t open to those landlords who are letting out non-residential properties such as a shop, garage or lock up. It also can’t be used by those wishing to disclose income on behalf of a company or a trust.If you don’t know if you need to disclose unpaid taxes under this campaign use HMRC's Let Property Questionnaire to help you decide.
Once you have arranged payment terms with the HMRC, you simply have to make the payments and that is the end of it as far as HMRC are concerned. From then onwards you will be expected to complete a tax return every year ongoing that you receive income from your rental property.