HM Revenue and Customs (HMRC) is continuing to issue letters to resident and non-resident landlords across the UK whom it believes have failed to declare their rental income.
Thousands of landlords have already taken the opportunity to bring their income tax affairs up to date with HMRC and secure the best possible terms to pay the tax outstanding.
Five years on, the Let Property Campaign is still in full swing, with HMRC recently issuing a fresh batch of letters to landlords it suspects are failing to disclose their rental profits.
UK estate agents, Countrywide, recently warned that as many as 80,000 extra properties came onto the rental market last year that had previously been up for sale.
A slowing property market has seen several ‘accidental’ landlords emerge that choose to let out their properties again rather than wait for a sale.
Johnny Morris, Research Director, Countrywide, said: “While most landlords are in the business by choice, the last three years have seen an increase in the numbers letting out a property they had previously tried to sell.
“With mortgage rates remaining low, these discretional sellers can afford to let their home while they wait and see what the future holds for the sales market.”
Unfortunately, many accidental landlords forget that the income they make from letting their properties in the meantime should be disclosed to the tax authorities.
HMRC is also issuing letting agents with statutory notices to demand details of rents collected on behalf of private landlords.
To get the best possible payment terms on the tax owed, accidental landlords must inform HMRC that they wish to take part in the Let Property Campaign. Individuals will then be given 90 days to calculate and pay the amount owed.
Who is eligible for the Let Property Campaign?
All individual landlords renting out residential property, including:
- Those renting out single properties
- Those renting out multiple properties
- Specialist landlords e.g. student or workforce
- Those renting out rooms in your main home above the Rent a Room Scheme threshold
- Those living overseas and renting out a UK property
- Those living in the UK and renting out a property abroad
- Those renting out a holiday home – even if you use it yourself
Your local TaxAssist Accountant can offer a great range of property tax advice for landlords and those with second properties.
As one of the largest accountancy providers in the UK, we are well-versed in assisting individual landlords with their Let Property Campaign disclosures.