HM Revenue and Customs is giving landlords who have not
declared all of their rental income to the taxman a chance to come forward and
'put their tax affairs in order'.
Under HMRC's new Let Property Campaign, landlords who may
owe tax - whether through misunderstanding the rules or deliberate evasion -
can come forward and tell HMRC about any unpaid tax on rents, and pay what they
owe, including any penalties and interest due.
The campaign is open to all residential property landlords -
from those that have multiple properties, to single rentals, and from
specialist landlords such as student or workforce rentals, to holiday lettings.
Marian Wilson, head of HMRC Campaigns, said: "All rent
from letting out a residential property or holiday home has to be declared for
income tax purposes. Telling us is simple and straightforward.
"We appreciate some people will have made honest
mistakes, and some may not be fully aware that the rent from a property is
taxable, and that is why it always makes sense to talk to us so we can help. It
is always cheaper to come forward voluntarily and pay the tax you owe, rather
than wait for HMRC to come calling.
"Telling HMRC about your tax liabilities is simple and
straightforward, and help, advice and support are available. The message for
all landlords owing tax is simple - it is better to come to us before we come
to you."
HMRC will use information it holds about property rental in
the UK and abroad, along with information already held on HMRC‘s digital
intelligence system Connect, to identify people who have not paid what they
owe. For those that fail to come forward, higher penalties - or even criminal
prosecution - could follow.
Your Money.com
