Has your agent referred you?
HMRC have launched a campaign targeting landlords who have failed to declare their rental property profits. Does this affect you? If so, help is at hand.
Historically, it was possible for landlords with small portfolios to fly under the radar and not declare their income due to not knowing the rules or by deliberately failing to declare this income.
Whilst we could never approve or advise this approach, for a long time many landlords got away with it.
Unfortunately, now HMRC have these taxpayers in their sights…
What is HMRC doing?
They have requested the details of landlords from the tenancy deposit scheme providers. As you know, landlords have to register their deposits with a scheme provider.
HMRC are now comparing this information with taxpayers’ records to identify taxpayers who have failed to declare their income. They are now writing to the taxpayers to ask them to bring their affairs up to date.
What does this mean for me?
If they write to you to request this information, then you will be suffering a penalty of between 20 and 40% of the tax owed. As the underdeclared income could be for many years the penalty is an additional cost you really need to avoid.
Of course, if you provide voluntary disclosure before HMRC reach out your penalty would be much lower, less than 20%.
What can we do to help?
I am currently helping many landlords either to declare their rental income to HMRC before they are prompted, or afterward because we can mitigate the penalties with proper engagement.
If your affairs are fully compliant then I apologize for taking up your valuable time, and also for any offense that you are not up to date.
If however, you think that you may have a problem, please click the link at the end of the video or fill out your details below, and I shall contact you in strict confidence to discuss how I can help to make this as painless as possible.
Whatever your ambitions, we will commit to them wholeheartedly and deliver the premium accountancy services you deserve. Get in touch today to book a chat with our chartered accountants in Nottingham at Seagrave French.