Landlords that receive letting income should notify HMRC by 5 October after the end of the tax year for which you start to receive that income. So, for the 2017-18 tax year that has just ended, HMRC needs to be notified by 5 October 2018 of any letting income.
The Let property campaign, provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities, whether due to misunderstanding the tax rules or because of deliberate tax evasion.
The campaign was launched in September 2013 and does not currently have an end date. Landlords who do not avail of the opportunity and are targeted by HMRC, can face penalties of up to 100% of the tax due together with possible criminal prosecution.
Taxpayers that come forward will benefit from better terms and lower penalties for making a disclosure. Landlords that make an accurate voluntary disclosure are likely to face a maximum penalty of 0%, 10% or 20% depending on the circumstance on top of the tax and interest due. There are higher penalties for offshore liabilities.
There are three main stages to taking part in the campaign: notifying HMRC that you wish to take part, preparing an actual disclosure, and making a formal offer together with payment. The campaign is open to all individual landlords renting out residential property and includes, landlords with multiple properties and single rentals as well as specialist landlords with student or workforce rentals.
If you want to make use of this disclosure facility we can help with the formalities.