HMRC - Let
Property Campaign
HMRC - Let Property Campaign
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Newsletter
Let Property Campaign
The Let Property Campaign gives you an opportunity to bring your tax affairs up to date if you’re an individual landlord letting out residential property in the UK or abroad and to get the best possible terms to pay the tax you owe.
If you owe tax on your letting income, you’ll need to tell HM Revenue and Customs (HMRC) about the income you haven’t declared by making a voluntary disclosure.
To get the best possible terms, you must tell HMRC that you wish to take part. You’ll then have 90 days to calculate and pay what you owe.
Who can do this?
You can report previously undisclosed taxes on rental income to HMRC under the Let Property Campaign if you’re an individual landlord renting out residential property.
This includes you if you’re:
- Renting out a single property
- Renting out multiple properties
- A specialist landlord, e.g., student or workforce rentals
- Renting out a room in your main home for more than the Rent a Room Scheme threshold
- Living abroad and renting out a property in the UK
- Living in the UK and renting a property abroad
- Renting out a holiday home even if you use it yourself.
Who cannot do this?
You can’t use this scheme to declare undisclosed income if you’re a company or a trust renting out residential property or if you’re renting out commercial property.
If you aren’t sure whether you need to disclose unpaid taxes under this campaign, you can use this questionnaire (http://www.hmrc.gov.uk/tools/let-property-campaign/question1.htm?WT.mc_id=govuk_letproperty1) to help you make the right decision about the action you need to take. You’ll answer a few simple questions and get guidance on what you need to do that is specific to your circumstances.
How to make a notification and disclose your income?
Notify
You must tell HMRC of your intention to make a disclosure. You need to do this as soon as you become aware that you owe tax on your letting income. This can be done through Digital Disclosure Service (DDS) form. In reply to his HMRC will tell your unique Disclosure reference number (DRN). At this stage, you only need to tell HMRC that you’ll be making a disclosure. You do not need to provide any details of the undisclosed income or the tax you believe you owe.
Disclose
You can do this as soon as you have your DRN, but you must disclose within 90 days of the date you receive your notification acknowledgement.
You can make a disclosure:
About your own tax affairs
On behalf of someone else (for example, if you’re a tax adviser)
When you send your disclosure you must pay what you owe.
Make sure that HMRC receives your disclosure and payment by the date stated on your notification acknowledgement. If you cannot pay what you owe by the deadline given you must have made payment arrangements with HMRC by that date.
If you don’t make a voluntary disclosure now and HMRC finds out later, you could get higher penalties or face criminal prosecution.
