The HMRC has announced one last chance for landlords who fail to declare all their rental income to come clean - or else take the consequences.
HMRC estimates that up to 1.5 million landlords may be underpaying up to £500 million in tax every year.
Under the Revenue’s Let Property Campaign, landlords who may owe tax – whether through misunderstanding the rules or deliberate evasion – can come forward and declare any unpaid tax, although they will have to pay possible penalties and interest.
The Revenue says it will be “working with a variety of bodies over the next few months to develop tools and guidance to support landlords of all types and help them get their affairs up to date.”
HMRC says it will use information it holds about property rental in the UK and abroad, along with information already held on its digital intelligence system Connect, to identify people who have not paid what they owe.
This is also likely to include cross-referencing letting agents’ returns with those of their landlord clients. For investors that fail to come forward, higher penalties – or even criminal prosecution – could follow.
Source: Letting Agent Today