Let Property Campaign
The Let Property Campaign (LPC) is designed by HMRC to give landlords the opportunity to bring their tax affairs up to date by offering individual landlords, letting out residential property in the UK or abroad, to get the best possible terms to pay the tax they owe.
Steve Wright, Fenn Wright Partner and lettings expert in Colchester provides explains: “ If landlords owe tax on their letting income, they’ll need to tell HMRC about the income they haven’t declared by making a voluntary disclosure before HMRC come calling, to get the benefit of 3 months to calculate and pay what they owe and avoid higher penalties and the risk of prosecution.
“Reports from across the country suggest that landlords are receiving letters from HMRC requesting information on long-term and holiday rental property addresses, letting periods, tenant numbers and rental income. The areas of London, East Anglia and South Wales appear to be particular targets.
“Some landlords are also receiving specific requests asking whether their properties were purchased with or without a mortgage, or whether they were a gift or inheritance from a family member or partner.”
The government’s website explains that there are many reasons why landlords may misunderstand the rules and so may not pay the right amount of tax. However, whether the errors were due to misunderstanding the rules or the landlord has deliberately avoided paying the right amount, they should notify HMRC now rather than wait until they uncover the errors. Landlords that don’t make a voluntary disclosure now and HMRC finds out later, could get higher penalties and face criminal prosecution.
The eligible landlords that are included in the the LPC range from those running simple Rent-A-Room schemes (and earning above the £4,250 tax-free limit) to landlords with multiple properties or specialist landlords in, for example, the student sector.