The consequences of not declaring letting a property and the HMRC let property campaign
HMRC continue to pull in record hauls of Capital Gains Tax, putting the increase down to the taxman’s blitz on the buy-to-let property market. It’s easy to see why this sector has come under heavy scrutiny as it can result in big wins for HMRC. And unless your tax affairs are fully up to scratch, you face significant penalties. You may need to take advantage of the HMRC Let Property Campaign.
How to avoid a 100% fine
The fact is that if you are buy-to-let landlord, it’s less a case of ‘if’ the taxman catches up with you, but ‘when’.
Don’t forget that HMRC can access details of the properties you own at the Land Registry and can easily collate these to your home address.
And when he does, you could be hit with penalties of up to 100% of the outstanding tax and, in serious cases, a prison sentence.
This isn’t scaremongering – it’s what’s happening right now. HMRC has seen its revenues rise by cracking down on the buy-to-let sector, it certainly isn’t going to relent any time soon.
Luckily, there is a way of mitigating the cost you would face if your buy-to-let tax affairs were investigated and found to be incorrect. Since Autumn 2013, HMRC has been running its ‘Let Property Campaign’, encouraging landlords who haven’t declared the right amount of tax to come forward.
Will the shutters go down on the HMRC Let property campaign?
HMRC can close the scheme at any time so best to act now!
By doing so, you can significantly reduce the penalties you face depending on how much you owe and how long you have owed it. But you need to be quick. Although the amnesty has been running for longer than anticipated, there’s no telling when the taxman will decide to pull the shutters down on it.
So if you’ve got the slightest concern about your tax affairs that relate to your buy-to-let property, get in touch with a THP advisor at one of our offices in Chelmsford, Sutton, Wanstead and Saffron Walden. It’s far better for us to help you to come clean now than wait for HMRC to come knocking on your door…
You know it makes sense!
About Karen Jones
Having worked for one of the world’s largest accountancy firms, Karen Jones uses her tax knowledge and skills to help clients obtain substantial reductions to their tax liabilities.
With an expanding portfolio of tax clients, Karen enjoys the variety her work brings her and particularly likes working with new businesses and people. With a growing number of tax clients, she frequently faces a variety of challenges and relishes the experience she gains as she solves them.
Karen likes the THP ethos: “I like the way the team has a professional, but friendly and down-to-earth approach – it creates a productive atmosphere that benefits everyone.”
Karen’s specialist skills:
- Personal Taxation
- Tax Efficient Planning
- Trust Administration