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If you’ve received a letter from HMRC stating “We’re writing to you because we’re aware that you’re a landlord who is letting property and you may be liable to pay tax on this income” you’ll need to make a disclosure via HMRC’s Let Property Campaign. This page will provide information on the Let Property Campaign and explain how Tax Dispute Experts can assist you in handling both the letter and disclosure, helping you to fulfil your obligations while reducing any unnecessary tax, interest, and penalties.
What Is the Let Property Campaign?
The Let Property Campaign offers landlords who owe tax on rental income from residential properties, either in the UK or overseas, a chance to regularise their tax matters and benefit from the most favourable terms available.
Why Did You Receive This Letter?
HMRC collects information about rental properties from numerous sources, including letting agents, government bodies, local councils, banks, and even anonymous tips from the public. They use this data, coupled with what the landlord has reported in their tax affairs, to determine if there are any unpaid tax liabilities associated with rental income. Receiving this letter therefore means that HMRC suspects that you have under-reported your rental income.
When Is a Disclosure via HMRC's Let Property Campaign Required?
A disclosure via HMRC's Let Property Campaign may be necessary if you have not previously informed HMRC about your rental income or if you have not declared the correct amount.
Handling the Letter and Responding
It's crucial to take this letter seriously and not ignore it, as doing so could lead to a formal investigation, along with higher tax liabilities, interest, and penalties.
Pay close attention to any deadlines mentioned in the letter. HMRC usually provides a specific timeframe for your response, often requesting that you "act and respond within the next 30 days" regarding income from letting property. However, do not rush to respond without careful consideration, as this could complicate matters further. We recommend consulting a specialist, such as Tax Dispute Experts, before replying.
How Tax Dispute Experts Can Help
Our experienced Tax Dispute Experts team is dedicated to guiding you through the Let Property Campaign disclosure process, offering tailored advice to meet your unique needs. We will provide:
A comprehensive review of your tax affairs to identify any issues that need disclosure and an initial assessment of your exposure.
Assistance with registering for the Let Property Campaign disclosure process, if applicable.
Preparation and submission of a Let Property Campaign disclosure to ensure you avoid unnecessary tax, interest, or penalties.
Drafting and delivering a letter of representation to HMRC, explaining your position to facilitate a swift resolution of your disclosure.
Negotiation of an affordable time-to-pay arrangement based on your financial situation and personal circumstances.
What Penalties Could You Have to Pay?
When discrepancies are identified, HMRC is obligated to consider applying financial penalties. These penalties are based on a percentage of the understated tax amount and can vary from 0% to 35%. The specific penalty rate depends on factors such as the timing of your disclosure, the reasons for the initial omission, and whether you voluntarily disclosed the information.
Penalties for deliberate non-disclosure are generally higher than those for unintentional errors. Each situation is reviewed on a case-by-case basis to determine the appropriate penalty level.
At Tax Dispute Experts, we have a strong history of helping clients minimise their financial penalties. Often, we are able to secure the lowest possible penalty allowed by law, and in some instances, clients may avoid penalties entirely.
Contact Us
Need assistance with disclosing income from letting property? Contact us today to speak with our Tax Dispute Experts and protect your interests.
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