23^rd Apr 2018

HMRC has just changed its 'Let Property Campaign' Service for landlords who are willing to inform them of and settle unpaid tax bills. It has added advice on how to settle unpaid tax bills on behalf of any landlords who have died.

The 'Let Property Campaign' is for landlords in the private rented sector who owe unpaid taxes through letting out 'homes' to renters in the UK as well as overseas; it helps them to settle their taxes and shows them the best options to do so.

Having made a disclosure to HMRC, landlords then have ninety days to work out their tax owed and settle the debt within the timescale.

Any person who is representing or is the executor for someone who has died, is able to access the digital disclosure service to make a disclosure, the HMRC does state that the person must make it clear they are acting on behalf of someone else and may require proof that they are allowed to do this.

To enroll in the Let Property Campaign landlords should:

• Inform the HMRC they wish to sign up to the Let Property Campaign
• Inform the HMRC all details of income, gains, duties and tax
• Make a formal offer and find out if acceptable
• Pay any tax that is owed

HMRC may offer reduced penalties to individuals who provide clear, concise and accurate/truthful information.

Landlords when calculating how much tax they owe need to have the details of yearly rental income that they have not declared. They must also work out how much allowable expenses they have had to pay out within those applicable years. Any allowable expenses that have been incurred must be deducted from the landlord's income to calculate the correct taxable profit.

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