Undeclared Rental Income?

If you are a landlord and make a full disclosure to HMRC through Self-Assessment then relax, you’ve nothing to worry about.  However, if you are a landlord and have not been declaring your rental income then be warned – HMRC could be coming for you!

The tax authorities now have access to so much information, including Airbnb details, that there is really no place to hide.  When HMRC finally catch up with you they will firstly expect you to pay over the income tax that you should have paid along with interest for late payment.

The pain doesn’t end there!  The penalties for non-disclosure can be as high as 100% of the unpaid tax for UK based properties and 200% for offshore properties.  In extreme cases of tax evasion, the individual might even end up in jail!

It really isn’t worth the risk, so why not let us help?  HMRC have been running the Let Property Campaign for a few years.  This campaign is available for individual taxpayers wanting to come clean and disclose all undeclared liabilities at favourable penalty rates.  A number of our clients have made a full declaration of undisclosed rental income using the Let Property Campaign.

The campaign isn’t available to landlords who are letting out non-residential properties such as a shop, garage or lock up.  It also cannot be used by those wishing to disclose income on behalf of a company or a trust.  However, don’t worry if this applies to you – we can still help.  The most important thing is to make your confession to HMRC before they get to you first!

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

Photo by chris robert on Unsplash