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Updates from the Clayton & Brewill team.

The Let Property Campaign

9th August, 2017

HMRC are currently running a campaign to encourage residential buy to let landlords to pay any tax that they owe. Nottingham accountants, Clayton & Brewill explain more about the Let Property Campaign, and the steps landlords need to take should they need to disclose any related income.Let Property Campaign

What is the Let Property Campaign?

The Let Property Campaign is an opportunity for landlords, who owe tax through letting out residential property, in the UK or abroad, to get up to date with their tax affairs and lower their risk of high penalties, if they were subject to an investigation.

The Let Property Campaign is open to all residential property landlords with undisclosed taxes. This includes:

  • those that have multiple properties
  • landlords with single rentals
  • specialist landlords with student or workforce rentals
  • holiday lettings
  • renting out a room in your main home for more than the Rent a Room Scheme threshold
  • those who live abroad or intend to live abroad for more than 6 months and rent out a property in the UK as you may still be liable to UK taxes

This campaign isn’t open to those landlords who are letting out non-residential properties such as a shop, garage or lock up. It also can’t be used by those wishing to disclose income on behalf of a company or a trust.

HMRC have a handy Let Property questionnaire to help landlords assess whether they need to disclose unpaid taxes under this campaign.

Is there a disclosure deadline?

No, the Let Property Campaign is ongoing and there is currently no disclosure window. However, we would advise that those landlords who intend to come forward do so sooner rather than later to avoid facing higher penalties if they are subject to a HMRC enquiry.

What are the benefits of the Let Property Campaign?

The Let Property Campaign offers the best possible terms for landlords to get their tax affairs in order. Any associated penalties will be much lower than if HMRC finds out that income hasn’t been correctly declared and the right amount of tax hasn’t been paid.

Penalties will depend on the reason why income wasn’t disclosed. A mistake, as opposed to deliberately not disclosing income, will be subject to a lesser penalty. HMRC will also take into account the level of which the person making the disclosure has helped them and the accuracy of the information provided.

There may also be the opportunity to spread the payments of what is owed.

How do I disclose income under the Let Property Campaign?

To take part in the Let Property Campaign you need to:

  • tell HMRC that you want to take part in the Let Property Campaign (Notify)
  • tell HMRC about all income, gains, tax and duties you’ve not previously told them about (Disclose)
  • make a formal offer
  • pay what you owe
  • help HMRC as much as you can if they ask you for more information

Before contacting HMRC, we would advise speaking to an accountant who can help ensure your tax affairs are in order. They will also be able to help negotiate payment terms and will do what they can to reduce any associated penalties.

If you’d like to find out more about the Let Property Campaign or any other aspect of buy-to-let tax, please get in touch.

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