HMRC campaign takes £20m in letting sector tax

The HMRC ‘Let Property’ campaign recovered just over £20m by the end of January – a dramatic rise from the October 2014 figure which stood at just £7.9 million. The surge came after letting agents were advised to pass on information as appropriate to the tax authorities, as well as an advertising and promotional campaign by HMRC.

A report from London chartered accountancy firm Jeffreys Henry LLP shows that some 9,500 landlords have ‘fessed up’ to the taxman.

“These figures should come as a warning to anyone with undisclosed rental income. With increased data gathering actives, it is less likely a case of if and more likely when HMRC catches up with you” according to Ian Leigh, tax partner at Jeffreys Henry.

HMRC now gathers information from a much wider set of sources than the traditional local authorities, the Land Registry and the electoral roll. In late 2014, hundreds of letting  agents were sent statutory notices to provide details of rents collected on behalf of all landlords.

“Landlords with undisclosed rental income should take this opportunity to come forward and regularise their tax affairs as soon as possible. Penalties as low as 20 per cent and affordable payment plans can often be negotiated for those who make a voluntary declaration as part of the Let Property Campaign” says Leigh.

Landlords who ignore this opportunity face penalties of up to 100 per cent of their tax liability and in certain cases criminal prosecutions.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

If you have any comments, please email the author of this article and click on the link above

Generic selectors
Exact matches only
Search in title
Search in content
Search in posts
Search in pages



Registered Office: Woodgate Studios, 2-8 Games Road, Cockfosters, Hertfordshire, EN4 9HN | Registered in England and Wales | Registered Company No. 3961047 | VAT Registration No. 752 6015 48