Post Pandemic, HMRC are looking at ways to re-introduce funds into their coffers without appearing to be targeting those hit by the Covid years!

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So, it is the ‘indisputable tax’ evaded that they can go, for where those people concerned have little or no defence!  Who might that be but landlords or those selling second homes!

Rental income has always been an area of scrutiny by HMRC, and I am seeing it being hiked up. So how do HMRC pick up on undeclared rental income?

They have a direct access to everything in the public domain like voters’ lists, council tax, the land registry, letting agents and online forums like Airbnb, Zoopla as well as scrutinising Facebook!

Where there are discrepancies between the information seen and that shown on a personal tax return, HMRC will issue an opening letter of Enquiry. Likewise, if no returns have ever been filed.

Landlords in the UK failing to declare the correct amount of rent continue to be easy pickings for HMRC and don’t forget they can go back 20 years if necessary to recover the tax, plus interest and penalty charges.

The unprompted penalties arising from a voluntary disclosure without HMRC intervention are less – starting at say 10-30% of the tax due. This is much higher if HMRC prompt the action by a letter.

HMRC will also charge interest on the tax underpaid in the relevant years so the sooner you declare it the less you will pay overall.

HMRC’s Let Property Campaign has been running for years and is a way for landlords to declare their income and minimise their penalties as HMRC are offering the best possible terms for individuals who come forward using this campaign.

If you have undeclared rental income and now wish to get your tax affairs in order, call Lindsay for a less painful solution to the whole matter


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