What You Need to Know About Let Property Campaign

Know About Let Property Campaign-Coreadviz accountants

The UK government recently announced a new campaign targeting landlords who let properties. The Let Property Campaign is an opportunity for landlords who owe taxes to get up to date with their tax affairs. A landlord who does not take up this opportunity faces significant fines.

Are you behind on your UK property tax and need help understanding the campaign? This article provides an overview of its key aspects. It outlines the objectives and implications for landlords.

Read on to learn more about how private landlords are affected.

What Is the Focus of the Let Property Campaign?

The Let Property Campaign is a unique HMRC program for landlords who owe tax on their rental income. If you own rental property in the UK or abroad, you can take advantage of the campaign. You’ll pay any outstanding tax you owe with reduced penalties and interest charges.

So if you’re behind on your rental property taxes, now is the time to take advantage of this special opportunity and get up to date with your tax affairs.

Who Is the Let Property Campaign Aimed At?

The Let Property Campaign is aimed at landlords who have not declared rental income or paid tax on it. If you let properties in the UK or abroad, you have a legal responsibility to declare your rental income and pay tax on it.
The campaign is also aimed at landlords who have not complied with their legal obligations in relation to their properties, such as not complying with fire safety regulations or providing adequate insurance.

How Do I Take Advantage of the Let Property Campaign?

If you’re a landlord who owes tax on your rental income, you can take advantage of the Let Property Campaign by disclosing your rental income and paying any outstanding tax. To do this, you need to contact HMRC and make full disclosure of your rental income.
Once you have done this, you will be given a payment plan to pay any outstanding tax, with reduced penalties and interest charges.

What Other Income Do I Need to Declare in addition to Rental Income?

In addition to rental income, you also need to declare any other income you receive from your properties, such as income from subletting, Airbnb, or other short-term lets. You must also declare any money you receive from the sale of a property.

What Are the Benefits of Participating under this scheme?

The main benefit of participating in the Let Property Campaign is that you will be able to get up to date with your tax affairs and avoid significant fines. If you do not take advantage of the campaign and come forward you may be subject to investigations and significant penalties.

In addition, by participating in the campaign you will be demonstrating your commitment to complying with your legal obligations as a landlord. This could give you an advantage over other landlords who are not participating in the campaign and could make it easier for you to find tenants.

How Do I Know if I Am Eligible to Participate Let Property Campaign?

To be eligible to participate in the Let Property Campaign, you must own rental property in the UK or abroad and owe tax on your rental income. You’ll notify the HMRC of your desire to participate in the program. At which point, you’ll disclose all income you’ve not disclosed before and pay what you owe.
It’s important that you answer all requests and questions that the HMRC asks of you. The more you comply with their requests, the deeper your discounts will be when they assess your case.

Who Is Not Eligible For The Campaign?

Non-residential properties such as shops, garages, or storage units are not eligible. Those wishing to declare income on behalf of a company or trust are also ineligible for the scheme. This is because the Let Property Campaign is intended for individuals who have failed to declare rental income, rather than businesses or organizations.

What Is the HMRC Nudge Letter?

The HMRC nudge letter is a letter that is sent to landlords who may be eligible for the Let Property Campaign. The letter reminds the landlord of their obligations to declare their rental income and pay any outstanding tax. It also provides information on how to take advantage of the campaign and get up to date with their tax affairs.

The nudge letter is not a formal notification that an investigation will take place, but it is an important reminder for landlords who may be eligible for the campaign.
If you are a landlord and have received a nudge letter from HMRC, it is important that you take action as soon as possible. The sooner you come forward and make a disclosure, the more favourable the terms of the campaign will be.

How Does HMRC Know About My Rental Income?

HMRC has a number of ways of finding out about rental income that has not been declared. This includes information from tenants, landlords, letting agents, and mortgage lenders. In addition, HMRC uses data from a variety of sources, including the Land Registry and Council Tax records.

If you are concerned that HMRC may have information about your rental income, you should contact them as soon as possible to make a disclosure.

What Happens if I Do Not Disclose My Rental Income?

If you do not disclose your rental income, you become subject to investigations and penalties. In addition, you may find it difficult to get mortgage finance, insurance, and tenancy agreements. If you are found to have evaded tax, you are liable for criminal charges.

Regularise Your UK Property Tax Today

The Let Property Campaign is a great opportunity for landlords to come forward and disclose their rental income without fear of penalties. If you’re one of the many UK property owners who are renting out a property, it’s important that you understand the finer details of this campaign and how to take advantage of it.

Contact CoreAdviz Accountants today for help with disclosure and filing your taxes – we can make the process quick and easy for you so that you can focus on what matters.