Should I Tell HMRC About The Buy-To-Let Property I Own?
Yes you should, regardless of the income ...
POSTED BY HELEN BEAUMONT ON 14/12/2018 @ 8:00AM
When I'm out networking, I still come across a large number of people who have purchased buy-to-let properties that have not declared their income to HMRC ...
If you own a buy-to-let property, you do have to tell HMRC regardless of the income!
photo by amadeusz misiak on unsplash
It's a simple scenario. You have been renting out a second property for some time, but have not declared the income to HMRC because you believed that you are making a loss or the income is clearly within your allowance.
HMRC's guidance now states that you must contact HMRC, even if your property income is less than £2,500 and you must report on a self-assessment tax return if it is:
£2,500 to £9,999 after allowable expenses
£10,000 or more before allowable expenses
If you don't usually send a tax return, you need to register by the 5th October following the tax year you had rental income.
If you fail to do this all is not lost. HMRC operates a 'Let Property Campaign' inviting individuals with undeclared rental income the opportunity to come forward and declare their back taxes.
This disclosure facility offers a number of advantages:
You get to approach HMRC before they find you! HMRC are now using information sourced from banks, the land registry and lettings agents to discover who owns rental properties, so it may only be a matter of time before they come knocking!
You get to self-assess the tax, interest and penalties payable and put your offer to HMRC. If done correctly it is likely that HMRC will accept this avoiding a lengthy enquiry.
The reason for the non-disclosure will determine the number of years that you need to disclose and the level of penalty payable. I often find once we have done the calculations it's not as bad as you think.
"Would you like to know more?"
If you'd like to find out more about making a disclosure to HMRC about your buy-to-let properties 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.
More blog posts for you to enjoy ...