If you’re a landlord in the UK who has not declared all your rental income to HM Revenue and Customs (HMRC), you may be at risk of penalties and prosecution.
However, there is a way to bring your tax affairs up to date and avoid these consequences: the HMRC Let Property Campaign. This is a disclosure initiative launched by HMRC in 2013, designed to help landlords declare any undeclared rental income.
Here are some Let Property Campaign tips for landlords in the UK looking to take advantage of the Let Property Campaign:
Understand the Rules
It’s crucial to understand the rules of the Let Property Campaign before making a disclosure to HMRC.
You can find detailed guidance on our article “A Complete Guide to Let Property Campaign”.
Here we explore the conditions under which Let Property Campaign penalties may apply, how to make a disclosure, scope of let property campaign and how to notify HMRC.
Take the time to read through this information carefully or seek advice from a tax professional.
Keep Accurate Records
Without a doubt, the primary pointer Let Property Campaign tip is to make a successful disclosure. Its important that you provide accurate records of your rental income and expenses under the Let Property Campaign.
This includes bank statements, rental agreements, and receipts for any repairs or maintenance carried out on the property.
Keeping good records will make the disclosure process smoother and help you to avoid any errors or omissions.
Consider a Voluntary Disclosure
Even if you haven’t received a formal notification from HMRC, you will still be able to make a voluntary disclosure under the Let Property Campaign.
Thereafter, this can reduce the amount of penalties you may have to pay and help to avoid any potential prosecution. If you’re unsure whether to make a disclosure, seek advice from a tax professional.
You can find out all about the LPC penalties that you might face in our Let Property Campaign Penalties article.
Another free tip for you is to refer to our Let Property Campaign Service consisting comprehensive coverage of all aspects of the LPC, including eligibility, disclosure process, potential penalties and more.
Negotiate a Payment Plan
If you owe tax as a result of your rental income, you may be able to negotiate a payment plan with HMRC under the Let Property Campaign.
This can essentially help to spread the cost of the tax owed over a longer period, making it more manageable for you. Be sure to discuss payment options with HMRC when making your disclosure.
Seek Professional Advice
If you’re unsure about any aspect of the Let Property Campaign or your tax affairs, seek professional advice.
A tax professional can help you to understand your obligations, make a disclosure to HMRC, and negotiate any payment plans.
Likewise, they can also provide ongoing tax advice to ensure you remain compliant with your tax obligations in the future.
Conclusion
In conclusion, the Let Property Campaign offers landlords in the UK a way to bring their tax affairs up to date and avoid penalties and prosecution.
By understanding the rules, keeping accurate records, considering a voluntary disclosure, negotiating a payment plan, and seeking professional advice, you can take advantage of this initiative and ensure you remain compliant with your tax obligations in the future.
We are dedicated to solve your queries.
Contact us for assistance at any stage of your journey.
