Address :- 152-178 Kingston Rd, New Malden KT3 3ST, UK

Timing :- Mon - Fri : 09:00 - 17:00

Phone :- 020 8191 9583

Email :- info@zahtaxaccountants.com

Timing :- Mon - Fri : 09:00 - 17:00

Phone :- 020 8191 9583

Email :- info@zahtaxaccountants.com

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HMRC Let Property Campaign

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Have you received a letter from HM Revenue and Customs (HMRC) under the Let Property Campaign? Are you letting out a property but haven’t paid tax on your rental profits? If the answer to these questions is YES, our expert team of HMRC Let Property Campaign Accountants can help you put things right by disclosing under Let Property Campaign.

What is the 'HMRC Let Property Campaign'?

Firstly, a brief introduction to the Let Property Campaign, which was announced in September 2013. The campaign offers incentives for those who have underpaid tax due to undeclared rental income. The main incentive for the campaign is the lower penalty for undeclared income and the opportunity to make a full and final disclosure of undeclared tax liabilities.

In order to take this advantage:

  • HMRC must be notified of the intention to disclose undeclared rental income; AND
  • The disclosure and payment must be made within 90 days of notification acknowledgment
Do I need to make any disclosure of my UK property income?

You should make a disclosure of your UK property income if:

  • Landlords who let out one or more UK properties
  • Landlords who live abroad and let out property in the UK

If you receive a letter from HMRC under Let Property Campaign for your undeclared property income, the disclosure under such circumstances would be a prompted disclosure.

If you realise that you have unpaid tax liabilities and therefore decide to make a disclosure, this would be a voluntary disclosure and HMRC, and there are more benefits:

  • There will be a reduction in tax-geared penalties where it is an unprompted disclosure
  • You will have the ability to negotiate payments terms, including time to pay arrangements
  • There will be an opportunity to make full and final disclosure of unpaid tax liabilities
  • A promise from HMRC not to publish the details of the taxpayer under the deliberate default program
Who can make disclosure under HMRC Let Property Campaign?

The following can make disclosures under Let Property Campaign:

  • Individual landlords making letting one or more residential properties
  • Landlords who specialises in residential let for student or workers
  • Landlords letting holiday accommodation
  • Anyone with a lodger in their main home where income increases the rent-a-room threshold
  • Non-resident landlords letting residential properties
How Zahtax Accountants can help?

We are experts in personal taxation and have a dedicated team of specialist landlord tax advisors who can advise you on the best way to disclose your rental income. Our specialist team of landlord experts have vast knowledge and experience in making disclosures and dealing with HMRC to ensure that you pay the right amount of tax on rental income. We have dealt with hundreds of disclosures since the campaign launch in 2013. Our HMRC Let Property Campaign Accountants can provide the following services:

  • Appointing Zahtax Accountant as your tax agent to deal with the disclosure on your behalf from start to finish
  • Preparing a notification of your intent to make a disclosure
  • Calculating your taxable rental profits
  • Ensuring that you claim all the legit expenses against your rental income to maximise tax saving
  • Calculation of your tax liability for each tax year, taking into account your income from all other sources
  • Calculation of interest charges and penalties (if due) on your rental income
  • Preparing the final disclosure and its submission with HMRC
  • Advise on how to make the payment to HMRC
  • Liaising with HMRC following the submission of the disclosure

Book a free initial consultation with one of our property experts

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Get in touch with us for a free initial consultation. All communications are in the strictest confidence.

HMRC Let Property Campaign – Frequently Asked Questions (FAQs)

I haven’t declared my property income for the last ten years; how will HMRC respond if I decide to disclose the Let Property Campaign?

HMRC is mainly interested in ensuring that you make full and final disclosure of your undeclared property or other income and pay your taxes. Our expert team will provide guidance to ensure that you make full disclosure of your undeclared income. We will appoint Zahtax Accountants as your tax advisor with HMRC and deal with them from start to finish. You will not have to deal with HMRC directly once we are appointed as your agent. 

 

Can I be prosecuted for not declaring my rental income?

HMRC is certainly not interested in prosecution as long as you make a full and unprompted disclosure of tax evaded or improperly claimed. However, they can’t offer immunity from prosecution. They can carry out criminal investigations where they are serious tax frauds and deliberate attempts to hide the taxes.

 

What happens after the disclosure is made?

Once the disclosure is submitted, HMRC expects you to keep your tax affairs up to date. This means that you should continue to declare your income and gains accurately in future.

 

What happens after the disclosure is accepted?

HMRC receive information from different sources and they will use it to identify customers where a disclosure should have been made or where the disclosure made is not as expected based on the information they hold.

 

Publishing details of deliberate defaulters

HMRC may publish the details of those who are not fair and honest in making their disclosures and deliberately fail in particular tax obligations. HMRC will not publish the details if you do the following:

  • Notify HMRC of your intention to make a disclosure
  • Make a full and accurate disclosure of your undeclared income and pay your taxes on time
  • Co-operate fully with HMRC if they ask for more information

 

I have started renting out my property; what should l do?

The first £1,000 of your rental income is tax-free. This is called property allowance. If your income is between £1,000 to £2,500, you need to speak with HMRC.

You must file a tax return if:

  • Your rental income is between £2,500 to £9,999 after expenses
  • £10,000 or more before allowable expense

 

I have been making losses since the start of letting my property. Do I file my tax return?

You may not need to file a tax return if your gross rental income before allowable expenses is less than £10,000. However, we advise you to submit a tax return so that your rental property losses are recorded with HMRC to ensure its claim against the future rental income.

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