The Let Property Campaign is a UK government initiative aimed at landlords who have not declared rental income and are therefore not paying the correct amount of tax. If you are a landlord with unpaid tax, you may be able to take advantage of the Let Property Campaign to disclose any unpaid tax and bring your tax affairs up to date.
Penalties for undisclosed rental income can range from 0% – 100% depending on the circumstances of the failure to disclose. Many factors play a role in the penalty including whether it was deliberate or not and whether the disclosure was voluntary. To read more about how the HMRC calculates these penalties you can check out our post: Failure To Notify Penalty.
What Is The Let Property Campaign?
The Let Property Campaign is a program launched by HM Revenue and Customs (HMRC) in the United Kingdom aimed at landlords who have not declared their rental income. It provides an opportunity for landlords to bring their tax affairs up to date voluntarily and receive more favourable terms.
Under the program, landlords are required to disclose any previously undeclared rental income and pay any outstanding taxes, interest, and penalties owed to HMRC. The program is open to all landlords, including those who rent out a single property, multiple properties, or a room in their own home.
benefits of the campaign
While you may not side-step all the penalties of not declaring rental income, the let property campaign offers many benefits and incentives to landlords to declare their rental income including:
- Reduced penalties.
- A simpler and more streamlined process for bringing their tax affairs up to date.
- The opportunity to spread payments over a period of time.
- Landlords who voluntarily disclose their rental income may also avoid criminal prosecution.
What Are The Let Property Campaign Requirements?
The campaign is designed to encourage landlords who have not declared rental income to come forward and declare it voluntarily to work with the HMRC. In order to take part in the campaign, you need to meet the following requirements:
- You must be a landlord who is renting out residential property in the UK or abroad.
- You must not have declared all of your rental income on your tax returns.
- You must not be currently under investigation by HM Revenue and Customs (HMRC).
- You must not have received a letter from HMRC telling you that they suspect you have unpaid taxes.
How to Take Part in the Let Property Campaign
1. Notify HMRC that you want to take part in the campaign.
- Go to the “Tell HMRC about underpaid tax from previous years” page and scroll to the bottom.
- Click on the “Make a disclosure – Start Now” button.
- Sign in and complete the requested form.
Alternatively, you can contact HMRC directly by phone to notify them that you want to take part in the Let Property Campaign. You will need to provide them with your personal details and information about your rental income.
Once you have notified HMRC of your intention to participate in the campaign, they will provide you with guidance on the steps you need to take to bring your tax affairs up to date and make any necessary payments. This may involve completing a tax return for previous years and paying any outstanding taxes, interest, and penalties owed. HMRC may also ask you to provide supporting documentation, such as tenancy agreements and rental income records.
cigma accounting reviews
2. Calculate the amount of tax you owe and make a disclosure to HMRC.
Calculating the amount you owe to the HMRC can be challenging. Especially if the tax returns need to be back-dated due to undeclared rental income for previous years.
A tax consultant like CIGMA Accounting can assist you by looking at your income and expenses holistically and completing the tax return calculations to minimise your tax liability as much as legally possible.
The HMRC is likely to request a complete Self Assessment (personal tax return). If you have never completed a self assessment before, you can read this informational blog: Do I need to Submit a Self Assessment?
3. Pay any tax you owe to HMRC.
4. Make sure you keep up-to-date with your tax affairs in the future.
One of the most important things you can do as a landlord to stay compliant with the Let Property Campaign is to keep accurate records of your rental income and expenses. This includes keeping receipts for any repairs or maintenance you have done on the property, as well as any expenses related to advertising or finding tenants. You should also keep track of any rental income you receive, including the dates and amounts of each payment. By keeping detailed records, you can ensure that you are accurately reporting your rental income and expenses and avoid any penalties for non-compliance.
At CIGMA we’ve created a detailed bookkeeping spreadsheet that can help you in tracking all your income and expenses in a logical way. You can download the spreadsheet here:
Benefits of Having A Professional Tax Advisor
It is important to declare all rental income on your tax return, even if you are not making a profit from your rental property. Tax return specialists know exactly what they need to do for you to reap the most benefits from government campaigns and assistance programs.
Some benefits of having a professional accountant or tax advisor on your side are:
- They can ensure that you are taking advantage of all available deductions and credits
- Provide guidance on how to properly report your rental income.
- If you are ever audited by the HMRC, they can minimise the risk of any penalties or fines
- Up to date with the latest legislation for rental income
Need to disclose undeclared income but don’t want to talk to the HMRC? We can help!
Reach out to us by completing this form and one of our staff members will get in touch within one business day.