23^rd Aug 2017

The HMRC's patience is fast running out with landlords failing to let them know full details of their rental profits or capital gains and has introduced a disclosure scheme that offers reduced fines.

It is now threatening that if they catch landlords failing to disclose these details then it may investigate their tax returns and finances for as long as up to twenty years ago.

The HM's Reveneus and Customs believes that out of 1.63 million UK private landlords, around a third (half a million) actually submit their yearly self assessment tax returns.

Landlords who contact the HMRC before tax inspectors (currently working through a list of suspected individuals) find them out, will be liable to discount penalties, whereas those who are tracked down will face the full penalties.

The list has been compiled from letting agents, the Land Registry, mortgage lenders, utility companies and councils.

Letters will shortly be posted to landlords that have not submitted their tax returns and will warn them they could face fines up to 100% of their tax owed up to a twenty year period. The government's Let Property Campaign, discounted penalties are between 0% and 30% of tax owed.

An HMRC spokesman said :“We are increasing our compliance activity and will be contacting landlords who we have identified as failing to pay tax on undeclared income.

“Anyone we contact will automatically be excluded from the Let Property Campaign, so will not have the benefit of lower penalties.”

The spokesman also warned landlords that have submitted their returns but had made stupid or careless mistakes will face penalties that could stretch back over six years, but those who are deemed as deliberately avoiding tax will face a much tougher investigation.

The spokesman added: “If we write to a property owner, any disclosure will be treated as prompted and will not qualify for the lower penalty regime.”

To find out more about the Let Property Campaign click here

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