To celebrate approaching the half-way point of the Let Property Campaign, HM Revenue and Customs have this week sent out a further 2,000 letters to landlords they know have not been declaring their rental profits. This will be followed by thousands more, as the trend has moved towards more regular send outs as opposed to large batches experienced in the past.
We expect HMRC will release figures in due course as to how much tax has been recouped, and it is expected there will be a significant rise from the £20m reported back in January. The last press release also stated that 9,500 had taken advantage of the campaign, however again, this number is highly expected to significantly increase. The campaign launched in 2013 was originally planned to last 4 years until September 2017, HMRC have not stated absolutely that this will be the definitive end date. Watch this space!
HMRC continue to act on the information they have been collating over the past few years. Their information has been gathered from all manner of sources including letting agents, land registry and it was even reported that social media was used. With regards the former, letting agents have been playing a big part in providing the necessary ammunition to HMRC. There are some letting agents who even choose to charge their landlord clients to provide this information to HMRC in recent years, of which an illustration of this can be found below:
As always, the message is clear. HMRC are fully aware of the landlords who have not declared their rental profits, and if you fall into this category, it really is only a matter of time before they catch up with you. However, on a more positive note, a large number of our clients are surprised at the size and volume of expenses claimable, and as such, coming forward and declaring under the Let Property Campaign has been nowhere near as bad as they first suspected. The best advice is not bury your head in the sand, come forward now, and ensure you benefit from the more favourable terms offered under the Let Property Campaign.
If you are in any doubt whatsoever, we strongly you contact us, and we shall be delighted to guide you through the entire process. We may be contacted via freephone 0800 1 22 33 57 or by email by clicking here.