Posted on 6th June 2018
HMRC is continuing its tax crackdown on private landlords by requiring letting agents to disclose details of rents collected on their clients’ behalf.
The Let Property Campaign is an ongoing drive that aims to get private landlords up-to-date on their tax affairs and to settle any tax owed on their rental property income. If you’re a landlord who is letting out residential property, in the UK or abroad, you need to tell HMRC about any undisclosed income as soon as possible.
Don’t forget that this applies to holiday lets, at home and overseas, not just long-term residential lettings. So, even if you’re only renting out a property for part of the year, make sure you’ve clarified your tax position.
Also, if you move out of your home in order to rent it out, any income you make on that – less tax deductible expenses such as mortgage interest – will need to be declared.
Focusing on the tax year ending 5th April 2018, HMRC is issuing statutory notices to letting agents instructing them to share information about rental income collected for private landlords. Agents will have to disclose details of any rents collected from tenants who have used the letting agency’s services in the past. So, it is in landlords’ best interests to voluntarily share their income information with HMRC at the earliest opportunity.
Designed to offer landlords the best possible terms for settling outstanding tax, the Let Property Campaign is open to residential landlords who: - own multiple properties - own single rentals - are specialist landlords with student or workforce rentals - rent holiday lettings - let out a room in their main home for more than the Rent a Room Scheme threshold - live abroad or intend to live abroad for more than six months and rent out a property in the UK.
There is no defined window for disclosure and you may still have to pay a penalty, depending on your reasons for non-disclosure.
It is essential that you share all relevant information with HMRC in order to stay on top of your tax affairs and avoid penalties in the future. But this doesn’t have to be a stressful process – get in touch with our friendly team today and let us help to get your house in order.