Let Property Campaign – Landlords’ voluntary disclosure

Let Property Campaign – ‘bring your tax affairs up to date’

Let Property Campaign is a scheme by HMRC, aimed at landlords who owe tax through letting out residential property.

According to HMRC the Let Property Campaign gives the taxpayer, “an opportunity to bring your tax affairs up to date and to get the best possible terms to pay the tax you owe.”

The scheme is open to those who have single or multiple properties.  This includes specialist landlords with student or workforce rentals, and holiday lettings. It is not open to those landlords who are letting out non-residential properties.  Such as a shop or office accommodation, and cannot be used by those wishing to disclose income on behalf of a company or a trust.

Unlike other earlier campaigns, there is no disclosure ‘window’ requiring landlords to notify their intention to use the scheme by a specific date.  HMRC do however state that landlords intending to come forward should not delay. This is because if they are subject to a tax enquiry and they have not made an earlier disclosure, they will risk higher penalties.

Penalties can be up to 100% of the tax liability.  However, for the Let Property Campaign, if landlords submit an accurate voluntary disclosure, the rates are 0%, 10%, 20% depending on the circumstances.

More information on the Let Property Campaign.

HMRC and ‘Connect’ – targeting landlords

The use of HMRC’s Connect Data System is making the targeting of landlords a potentially easy option. It processes data, now being obtained through information requests under Schedule 36 FA 2008 from third parties, such as Land Registry, Estate/Managing Agents, DSS etc.

Indeed, we have identified increased HMRC activity through the claims currently being made under the fee protection polices for rental income and landlords. Not just on UK properties but also those overseas.

How can Vantage Fee Protect help?

We offer tax fee protection insurance for accountancy practices and their clients. Whilst this policy would not pay the costs of making a Voluntary Disclosure, should HMRC open a formal enquiry as a result of the disclosure, the policy would cover the cost involved in dealing with the same.  This is once it can be shown that a full declaration of all omissions – not merely the property income – was made at the time of the voluntary disclosure.

If you would like to know more about Vantage Fee Protect’s tax fee protection insurance and how it can help you and your clients, please contact us.  Our schemes can be individually tailored to suit your practice requirements.

 

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