The Let Property Campaign
Becoming a landlord can be an exciting venture, offering both a regular income and an investment opportunity. However, navigating the world of rental properties also comes with its fair share of responsibilities, including tax obligations. The Let Property Campaign, introduced by HM Revenue and Customs (HMRC) in August 2013 was intended to run for 18 months, but 10 years later there is no sign of it being closed.
The initiative is aimed at residential landlords, holiday lets and other specialist landlords to assist with their tax obligations and simplify the process of compliance. It is not open to companies, trusts, letting of commercial property or non-resident landlords.
Understanding the Let Property Campaign
The Let Property Campaign is a voluntary disclosure opportunity provided by HMRC, designed to encourage landlords who have undeclared rental income to come forward.
Landlords who wish to participate in the Let Property Campaign need to notify HMRC about their intention to disclose previously undeclared rental income. This can be done through an online form, via their accountant or tax advisor, or by calling the dedicated helpline.
Once registered under the campaign landlords have 90 days to calculate and pay over the undeclared tax, interest, and penalties, all of which are self-assessed.
These calculations can be complicated, but using an accountancy professional at this stage will provide peace of mind and ensure that all the relevant information has been included.
Participating in the Let Property Campaign also means committing to future tax compliance. Going forward landlords are expected to keep accurate records, report rental income correctly, and meet their tax obligations promptly.
Objective of the scheme
The campaign aims to simplify the process of reporting rental income. It provides a straightforward way for landlords to disclose any previously undeclared income.
By voluntarily disclosing the information, landlords demonstrate their commitment to rectifying any mistakes and co-operate with HMRC to resolve their tax affairs, which can result in significantly lower penalties.
Once landlords have disclosed their undeclared income and settled any outstanding tax liabilities, they can enjoy peace of mind, knowing that their tax affairs are in order.
The Let Property Campaign offers a valuable opportunity for landlords to rectify any mistakes or omissions in their tax affairs, ensuring compliance and providing peace of mind. If you are a landlord who has undeclared rental income, consider taking advantage of the Let Property Campaign. If you would like some assistance with this, please do get in touch and someone from Perrys will be happy to help, it is always better to proactively address any tax-related issues rather than face the consequences of non-compliance in the long run. HMRC have a guide to making a disclosure or you can contact HMRC
Dedicated HMRC Phone Line: 0300 123 0998