HMRC estimates that up to 1.5 million landlords may be underpaying £500 million in tax every year and has subsequently launched the ‘Let Property Campaign’ to encourage voluntary disclosures of undeclared and under-declared rental income.
The issue of undeclared rental income has been an ongoing concern for HMRC but the latest focus on UK landlords is a step further than any previous approach. HMRC will be issuing letting agents with a statutory notice to obtain details of rent collection carried out on behalf of landlords. It can there therefore be assumed that HMRC will be comparing this information with the income declared by the landlord.
This new surge of activity shows that it’s now more important than ever for UK landlords to come forward and declare any undeclared rental income to HMRC. HMRC is far more lenient with taxpayers who have approached them with undeclared income, as opposed to discovering this information from a third party and having to approach the taxpayer.
If you have under-declared any UK rental income, or you have just obtained a rental property and wish to ensure your tax affairs are in order from the outset, then taxback.com can help. We provide a fully compliant UK self assessment tax return filing service for landlords, including bringing any arrears up to date and dealing with HMRC on your behalf.