HMRC appear to be intensifying their efforts to clamp down on current or historic undeclared rental income, highlighting the need for individuals to bring their affairs up to date and declare any issues sooner rather than later.
HMRC earlier this year struck a deal with Airbnb to obtain the income details of all of their 225,000 UK hosts, suggesting the treasury are cracking down on undeclared rental income, whether it is intentional or not. The Let Property Campaign (LBC) is largely the only tax “amnesty” that HMRC are currently running in this situation.
What is the LPC?
The LPC, introduced several years ago, enables landlords to resolve historic irregularities or omissions with a lower penalty regime available – provided you tell them before they contact you.
The LPC is an opportunity open to all residential property landlords with undisclosed taxes. This includes:
- those that have multiple properties
- landlords with single rentals
- specialist landlords with student or workforce rentals
- holiday lettings
- renting out a room in your main home for more than the Rent a Room Scheme threshold
- those who live abroad or intend to live abroad for more than 6 months and rent out a property in the UK, as you may still be liable to UK taxes
How can we help?
Magma can act on your behalf to contact HMRC to advise them of an intention to declare under the LPC. This then triggers a 90-day clock to provide details of the income and expenses in order to calculate the tax due on the formal declaration itself. Find out more by contacting us on 01788 539000 or 0116 261 0061.
Read more of Magma’s blog articles here: https://www.magma.co.uk/blog