Understanding the Let Property Campaign

The Let Property Campaign, offered by HMRC, provides an avenue for individuals to bring their tax affairs up to date and ensure compliance with tax regulations related to rental properties. This article serves as a comprehensive guide on making a disclosure through the Let Property Campaign.

The Let Property Campaign gives you the opportunity to make a voluntary disclosure BEFORE HMRC issues you with a campaign nudge letter.

Seek Professional Advice

It is highly recommended to seek professional advice during an HRMC tax enquiry. Engage a qualified tax accountant or tax advisor experienced in dealing with HMRC investigations.

Tax Guard has experience in helping customers make voluntary letting income disclosure and dealing with HMRC investigations.  You will be allocated an expert Tax Consultant who will take responsibility for your tax affairs ensuring we can reduce your stress and financial liabilities. 

Benefits of Participating in the Let Property Campaign

Participating in the Let Property Campaign offers several advantages for landlords:

Reduced Penalties and Fees

By voluntarily disclosing previously undisclosed rental income, landlords can benefit from reduced penalties and fees compared to what they might face if HMRC discovered the non-compliance through an investigation. The campaign encourages cooperation and rewards those who proactively come forward to rectify their tax affairs.

Flexible Payment Options

The Let Property Campaign allows landlords to arrange suitable payment plans for any outstanding tax liabilities. This flexibility eases the financial burden and provides landlords with the opportunity to spread payments over a manageable period.

Peace of Mind and Compliance

By making a disclosure through the Let Property Campaign, landlords can achieve peace of mind knowing that they have addressed any non-compliance issues. It allows them to rectify errors, bring their tax affairs up to date, and ensure ongoing compliance with tax regulations.

Access to Support and Guidance

The Let Property Campaign provides access to support and guidance from HMRC via Tax Guards team of experts. Landlords can receive assistance in understanding their tax obligations, completing necessary forms, and calculating their rental income accurately. This guidance ensures that landlords have the information they need to make a complete and accurate disclosure. Tax Guards also ensures your future tax compliance and effective tax planning to minimise your future tax liability including Inheritance Tax.

How to Make a Disclosure

To make a disclosure through the Let Property Campaign, landlords need to follow these steps:

Contact Tax Guard

We recommend you contact Tax Guard who can take ownership of the interaction with HMRC.  We recommend you contact Tax Guard for a free, no obligation, consultant appointment where we can review your untaxed income and agree a risk-based strategy.

Notify HMRC

Landlords must notify HMRC that they intend to participate in the Let Property Campaign. This can be done by completing the appropriate notification form or by contacting HMRC directly. Tax Guard will contact HMRC for you via HMRC’s DDS (Digital Disclosure Service).  If HMRC has issued you with a campaign ‘nudge’ letter, we will need the reference number to lodge your disclosure and engage with HMRC.

Calculate Rental Income

Landlords need to calculate their rental income accurately, including all rental properties and the corresponding periods. They should include any previously undisclosed income, ensuring full disclosure to HMRC.

Tax Guard will ensure you identify all allowable deductions and relief.  For example, landlords of furnished let property can avail of a 10% wear and tear allowance for years prior to 2016/17. 

We can also help you calculate the taxable rental income using fact based estimates for historic expenses. This is usually required as we find that landlords did not keep records for all income and expenditure.  

Make a Disclosure

Once the rental income has been calculated, landlords must make a disclosure to HMRC. This involves providing details of the undisclosed income, any expenses related to the rental properties, and any outstanding tax liabilities. This can be a complex area and we recommend you engage with Tax Guard and commission us to make your HMRC disclosure report.

Pay any Tax Owed

Landlords are responsible for paying any tax owed on the undisclosed rental income. HMRC will work with landlords to establish suitable payment arrangements based on individual circumstances.

Participating in the Let Property Campaign offers landlords the opportunity to rectify their tax affairs, achieve compliance, and benefit from reduced penalties. By following the steps outlined in this guide, landlords can ensure a smooth disclosure process and establish a stronger footing in their tax obligations related to rental income.