Picture: Dan Morgan
Birmingham-based chartered accountancy firm JW Hinks is advising that HM Revenue and Customs (HMRC) is giving landlords who let residential property the opportunity to put their tax affairs in order.
HMRC believes that up to 1.5 million landlords may have underpaid or failed to pay tax owed, and the loss is estimated at up to £500 million in UK tax every year.
Now it has launched the Let Property Campaign, under which landlords who may owe tax – whether through misunderstanding the rules or deliberate evasion – can come forward and tell HMRC about any unpaid tax on rents and pay what they owe, including interest due, plus reduced penalties.
The campaign, which launched recently, is open to all residential property landlords, including those who let out a single property, a large property portfolio, student or workforce rentals and holiday homes.
Dan Morgan, Tax Partner at the Edgbaston firm, said: “This is the latest in a series of campaigns by HMRC targeting sectors where it believes some people are not paying their fair share of tax.
“HMRC has already warned that it will be using information it holds on property rental both in the UK and abroad, as well as on its digital intelligence system Connect to identify people who have not paid what they owe. Therefore, it is important to take advantage of this opportunity to put your affairs in order with more favourable terms.
“If you fail to come forward and HMRC catches up with you then you will not only face higher penalties but could also face criminal prosecution. If in doubt about your tax position, it is always best to seek professional advice.”
For further information, please contact JW Hinks on 0121 456 0190