Something to declare? HMRC’s let property tax amnesty is still open
The consequences of not declaring letting a property
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.
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 property tax amnesty?
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 today. 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 Jon Pryse-Jones
Since joining THP in 1978, Jon Pryse-Jones has been hands on with every area of the business. Now specialising in strategy, business planning, and marketing, Jon remains at the forefront of the growth and development at THP.
An ideas man, Jon enjoys getting the most out of all situations, “I act as a catalyst for creative people and encourage them to think outside the box,” he says, “and I’m not afraid of being confrontational. It often leads to a better result for THP and its clients.”
Jon’s appreciation for THP extends to his fellow team members and the board. “They really know how to run a successful business,” he says. He’s keen on IT and systems development as critical to success, and he continues to guide THP to be at the cutting edge and effective.