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Rental Income – HMRC targets landlords over unpaid tax
HM Revenue and Customs (HMRC) is giving landlords who have not declared all of their rental income to the taxman an opportunity to come forward and “put their tax affairs in order”.
HMRC estimates that up to 1.5 million residential buy to let property landlords may be underpaying tax on rental income by up to £500m each year.
Under HMRC’s new Let Property Campaign, landlords who may owe tax, whether that is through misunderstanding the rules or due to deliberate evasion, can come forward and tell HMRC about any unpaid tax on rental income, and pay what they owe, including any penalties and interest due.
Marian Wilson, head of HMRC Campaigns, said: “All rent from letting out a residential property or holiday home has to be declared for income tax purposes. Telling us is simple and straightforward.
We appreciate some people will have made honest mistakes, and some may not be fully aware that the rent from a property is taxable, and that is why it always makes sense to talk to us so we can help. It is always cheaper to come forward voluntarily and pay the tax you owe, rather than wait for HMRC to come calling.”
HMRC will use information it holds about property rental in the UK and abroad, along with information already held on HMRC‘s digital intelligence system “Connect”, to identify people who have not paid what they owe. For those that fail to come forward, higher penalties or even criminal prosecution could follow.
More help is available for landlords by calling HMRC’s Let Property Campaign Hotline on 03000 514 479.
Post courtesy of Mortgage Solutions.