Property let campaign was introduced some years ago.

This to help landlords that have not declared their rental income to HMRC in the past years.

Basically, what the HMRC is trying to achieve with this campaign is to give the landlords the opportunity to declare their rental income to them.

The rental income from 20 years ago can be assessed under this campaign.

How these campaigns have been applied?

HMRC has contacted some of the landlords already with undeclared rental income. However, they want taxpayers to voluntarily make the declaration for each tax year.

They would have to make declaration for each tax year.

Penalties for non-declaration of rental income.

When HMRC contacts the landlord, it’s a prompted declaration and the penalty applied under the campaign would be 20% of the unpaid tax.

If the property is owned by more than one person, everyone makes their declaration.

What happens when a taxpayer makes voluntary declaration without being prompted.

When a taxpayer contacts the HMRC without being prompted under this campaign, the penalty on the unpaid tax is at 10% rather than 20%, trust me it does make a lot of difference.

Will the window for property campaign close?

The HMRC have stated that the window for the campaign is temporary.

When this window closes, the penalty will be at 30% of the unpaid tax.

 

 

How HMRC know about your property income?

In the last few years, councils and letting agents all must inform HMRC about the property that they are letting out on behalf of the landlords.

They have all the information; they are just waiting for the right time to come for you and it is not even funny.

I usually advise that this is an opportunity for everyone to get everything in order and doing the right thing going on forward.

Steps in Benefiting from the let property campaign.

• Firstly, the taxpayer would notify HMRC about their intention of taking part in the let property campaign.
• Secondly, they would inform them about the all income, gains, tax, and duties you’ve not previously told them about by submitting a disclosure.
• Thirdly, Help HMRC as much as you can if they ask you for more information.
• Fourthly, HMRC would give the taxpayer 90 days after informing them to make disclosure
• Lastly, they would write to make a formal offer to explain their circumstance.

Conclusion on the property let campaign    

With the property let campaign, HMRC has stated that taxpayers could make payment arrangements to pay any outstanding taxes as soon as the income has been declared.

Thanks for reading my blog, if you would like me to support you with your property let campaign kindly contact me.