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08/07/24

HMRC | Let Property Campaign

HMRC | Let Property Campaign
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The HMRC's Let Property Campaign offers landlords renting out residential property in the UK and abroad a chance to settle their tax obligations, getting what HMRC describes as "the best possible terms."

This is not unusual, HMRC regularly run ‘Campaigns’ targeting specific areas where it suspects that income is not being declared as required.

In a previous article, we explained the nature of a 'nudge letter' issued by HMRC to both individuals and corporate taxpayers. These letters are intended to encourage recipients to review their tax returns and ensure that all financial gains have been fully declared to HMRC.

Currently, landlords are receiving a 'Nudge Letter' from HMRC as part of the 'Let Property Campaign,’ offering them the opportunity to provide details of rental income being received which may not have been declared.

Tim Thompson of KANGS comments generally.

Disclosure of Income

If a taxpayer voluntarily discloses any tax irregularity, the general expectation is that HMRC will, in normal circumstances, simply impose a reduced penalty as sufficient punishment, thereby avoiding the need to pursue criminal proceedings.

Irrespective of whether a nudge letter has been received from HMRC, whether as the result of a Campaign or otherwise, a Landlord taxpayer is always entitled to voluntarily disclose to HMRC previously undisclosed letting income.

The appropriate process is:

  • HMRC should be notified, via its online facility, that it is wished to make a disclosure. No details are required at this stage.
  • HMRC will provide in writing a Disclosure Reference number.
  • Thereafter, within ninety days full to disclosure of the undeclared income, including allowable expenses, should be delivered.
  • The taxpayer is required to calculate the tax owed and the interest payable. Penalties will also be payable.
  • If HMRC suspects that the disclosure is not full and frank and/or the interest payable has been calculated incorrectly, it may reject the disclosure.
  • Payment of the amount owed to HMRC must be made within the ninety-day period unless a scheduled payment arrangement has been agreed with HMRC.

How Can We Assist?

The Team at KANGS provides the benefit of years of experience gained from advising and assisting clients involved with every conceivable situation involving HMRC, including the making of Voluntary Disclosures.

Our Team is regularly engaged in HMRC Compliance Checks, Appeals to both the First and Upper Tier Tribunals and defending clients facing criminal investigations and prosecutions conducted by HMRC.

As a matter of course, our Team regularly:

  • assist clients prepare their disclosure for HMRC,
  • work in conjunction with our client’s’ Accountants,
  • act as agents and liaise with HMRC on our client’s behalf,
  • conduct negotiations on a client’s behalf with HMRC seeking settlement of the dispute upon the most favourable terms available.

If we can be of assistance, please do not hesitate to contact the Team at KANGS using the details below:

Tel:       0333 370 4333

Email: info@kangssolicitors.co.uk

We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through live conferencing or telephone.

Hamraj Kang

Hamraj Kang
Senior Partner

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Tim Thompson

Tim Thompson
Partner

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Nazaqat Maqsoom

Naz Maqsoom
Associate

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