The Let Property Campaign is well under way, with HMRC increasingly sending out more and more letters, targeting landlords with undeclared rental income as they strive to recoup as much unpaid tax as possible. Our blog last week showed an example of the letters which are currently being sent out, prompting landlords to register under the campaign. Landlord tax advisors RITA4Rent are blogging today to illustrate the Let Property Campaign with photos showing the letters received at various stages of the process from HM Revenue and Customs.
As you are probably aware from our previous posts, the first step is to fill in and submit the DO1 notification form. This is available via HMRC. Once this has been completed, you will receive the following letter, acknowledging receipt, and stating your Disclosure Reference Number and Payment Reference Number. The former is required when submitting your disclosure form, named the DO2 form. The latter is required when making payment in respect of taxes owed under the Let Property Campaign.
See below for an example of the initial letter you would receive on making a notification:
Once the above letter has been received, you must pay heed to the date on the letter. 3 months from this date you must submit your disclosure form, named the DO2 form.
On completion of your calculations and submission, HMRC will consider the disclosure and decide whether to accept it, or field further questions. It is of paramount importance to prepare the DO2 form absolutely correctly, as the HMRC Let Property Campaign office will already hold information on your circumstances. If the disclosure deviates from their expectation, then expect further questions! It should also be noted that payment must be made on the same date that the disclosure is made.
If the HMRC Let Property Campaign office are happy with the disclosure, they will send you a letter, confirming your DO2 disclosure has been accepted and that no further action will be taken.
As payment has already been made, you can rest assured that once this letter is received, you are fully up to date, and if applicable, you can now begin submitting annual tax returns in the normal way.
An example of the HMRC Let Property Campaign acceptance letter is below:
It is strongly advised to seek professional assistance when registering and disclosing under the HMRC Let Property Campaign. RITA4Rent are specialist property and landlord tax advisors, and will be delighted to assist you. We have been assisting clients since the campaign was launched and have vast experience in this area.
Please do not hesitate to contact us to discuss matters further.