UHY Ross Brooke Chartered Accountants

FAQ on the Let Property Campaign for Landlords

property tax - landlords

Chris Davies answers some FAQ about the Let Property Campaign for Landlords

By Chris Davies

Q: What is the Let Property Campaign?

A: The Let Property Campaign is a HMRC initiative that allows landlords to disclose any undisclosed rental income and rectify their tax affairs. It is open to all residential property landlords, including those who own multiple properties, landlords with single rentals, and specialist landlords. Even those who rent out a room in their primary residence can participate. However, it does not cover non-residential property landlords like garage or shop owners.

Q: Why should I participate in the Let Property Campaign?

A: There are several benefits to participating in the Let Property Campaign:

  • You can avoid higher penalties and potential criminal investigations.
  • You can get favourable terms on your disclosure, such as reduced penalties.
  • You can spread out your payments over time if you cannot afford to pay the full amount in one lump sum.
  • You can set your tax affairs in order and have peace of mind knowing that you are compliant with the law.

Q: How do I participate in the Let Property Campaign?

A: To participate in the Let Property Campaign, you must first notify HMRC of your intention to make a disclosure. You can do this using the Digital Disclosure Service (DDS) form. Once you have received your unique Disclosure Reference Number (DRN), you can proceed with the disclosure. You have 90 days after the notification acknowledgment date to submit your disclosure and make the necessary payment.

Q: What information do I need to prepare for my disclosure?

A: To prepare for your disclosure, you need to gather all of the necessary information and records, such as:

  • Your rental income for each year you failed to declare to HMRC
  • Your rental expenses for each year you failed to declare to HMRC
  • Any other relevant information, such as details of any mortgages or loans you have on your properties

Q: What if I need help preparing my disclosure?

A: If you need help preparing your disclosure, you can contact a professional tax advisor. They can help you gather the necessary information and records, calculate your rental income and expenses, and complete the disclosure form.

Q: What are the possible penalties for failing to disclose my rental income?

A: The applicable penalties for failing to disclose your rental income vary depending on the circumstances. Deliberately withholding information from HMRC may attract more significant penalties than simple mistakes. However, participating in the Let Property Campaign can lead to lesser penalties than HMRC uncovering non-payment of taxes later.

Q: What are the payment options for the Let Property Campaign?

A: If you cannot afford to pay the full amount of your tax liability in one lump sum, you may be able to spread out your payments over time. HMRC will consider your individual circumstances when making a decision about whether to allow you to spread out your payments.

Q: What are the consequences of not disclosing my rental income?

A: HMRC is actively targeting compliance for all types of landlords. They will identify and contact landlords suspected of undeclared rental income, leading eventually to compliance checks or inquiries. Those who choose not to disclose their liabilities under the Let Property Campaign will face higher penalties and lose the opportunity for favourable terms. In severe cases, HMRC may initiate a criminal investigation.

Next steps

The Let Property Campaign is an excellent opportunity for landlords to rectify any undisclosed taxes and set their tax affairs in order. By taking action now, you can avoid higher penalties, potential criminal investigations, and ensure compliance with the law.

We recommend referring to the official resources below:

If you require further assistance or have specific questions regarding the Let Property Campaign, get in touch with a professional tax advisor or the HMRC helpline.

Find out about the accounting services we offer landlords, get help to choose the best accounting software package and the landlord’s property management software we recommend for our clients.

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