Landlords And The HMRC Property Tax Campaign
Have you made your declaration yet?
POSTED BY HELEN BEAUMONT ON 21/08/2019 @ 8:00AM
HMRC announced a number of campaigns in 2013 so that taxpayers could bring their tax affairs up to date, no questions asked ...
HMRC are still running their Property Tax Campaign which offers preferential penalty rates for disclosure!
photo by jesse vermeulen on unsplash
Each campaign was designed to target a specific group of taxpayers. All except two have finished now, but the 'Property Tax Campaign' is still with us.
"But the question is, how long for?"
Originally, HMRC discovered that there are more than 1.5 million landlords in the United Kingdom, but they had details on less than 500,000 of them. Since the Property Tax Campaign started over 5 years ago, 35,099 people have come forward to make voluntary disclosures.
HMRC believe there is over £500 million of unpaid tax due from landlords, but the campaign has only recovered 17.1% of that enormous amount.
If you are a landlord and have been receiving rental income, but not declared it, you will find that full and voluntary disclosure of all unpaid taxes will incur lower fixed percentage penalties. Campaign rates start at 0% and go all the way up to 35% depending on the amounts. After the campaign ends, the minimum will be 30% and can go all the way up to 100% of what's due, depending on the reason for non-disclosure.
To take advantage of the Property Tax Campaign, make a notification online and HMRC will issue a disclosure reference to you. You can pay within 90-days of receipt of the reference letter. The percentage penalty is calculated with your response to the question, "Please enter the reason(s) for the penalty rate(s) you have chosen".
"The lack of disclosure could have been an error, careless or deliberate!"
The taxpayer can then calculate the amount of tax lost, plus the penalty, plus back interest. Once the final amount has been agreed with HMRC, the payment is due in full, however, HMRC understands that this could be a considerable amount of money so do offer time to pay.
If you do not voluntarily disclose any tax liabilities to HMRC and subsequently receive a nudge letter from them, they will still process you under the Property Tax Campaign as long as you respond within the time limit shown in the letter.
"Would you like to know more?"
If you'd like to find out more about HMRC and their Property Tax Campaign then do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.
Until next time ...
More about Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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