HMRC Let Property Campaign

HMRC has been running its Let Property Campaign since 2013 with no signs of it being closed in the near future.

The campaign is aimed at Landlords (including Holiday Lets) who have failed to disclose rental income. As a reminder, all income from property over £1000 per annum must be disclosed to HMRC via Self-assessment.

For Landlords who have failed to disclose income (for whatever reason) the campaign offers an opportunity to get your tax affairs up to date in a straightforward manner.

How does it work?

1. Notify HMRC that you wish to take part in the campaign.
2. Calculate all your accounts for the years that have been missed. This will be complex and care needs to be taken to include all relevant income and expenditure. You have 90 days to do this.
3. Calculate the tax due and make a formal offer. Using a reputable accountant helps with this.
4. Pay the tax and any penalties
5. Keep your tax affairs in order going forwards. You’ll sleep better too!

HMRC Connect System

HMRC uses a system called Connect. It used to be pretty basic but now uses sophisticated AI to identify potential tax evasion. For Landlords, it uses data from the Land Registry to determine owners of multiple properties and compares this to tax records. It also uses data sources such as AirBnB, Booking.com and others to identify Holiday Lets. They even use AI to link social media activity to individual taxpayers.

Ultimately, the nature of property ownership means that the old days of rogue landlords getting away with not declaring their income are long gone. It’s only a matter of time before you get caught.

How will I benefit?

By using the Let Property scheme you will get preferential terms on any penalties and interest that would normally be due. For cases where we can show human error or honest mistakes, often no penalties will be due. You may also be able to negotiate payment terms for the final tax bill.

The alternative is to let HMRC catch you. The penalties in this case can be up to 100% of the outstanding tax. Is it worth it?

How can PropertyTax.Wales help?

If you have undisclosed rental income, we will work with you in a sensible non-judgemental way. We’ll agree a fixed fee in advance for the work. We’ll make sure we prepare your tax accounts quickly and ensure that all relevant expenses are claimed. We’ll then work with HMRC on your behalf to secure the best possible outcome.

If your property tax affairs are keeping you awake at night, then give us a call. I can’t make the tax bill go away, but I can make process as stress free as possible.