The HMRC gives opportunities individuals who let out their properties on rent to come forward and disclose any previously undisclosed income from rental properties. Under the Let Property Campaign an individual can disclose any taxes he or she owes to the HMRC from the properties they have rented out. The individual would be required inform the HMRC of the same following which the latter would grant the individual a total of 90 days to calculate the due amount and make the required payments.
You can avail the disclosure the facility under the Let Property Campaign if you belong to any of the following categories –
- If you are –
- renting out a single property
- renting out multiple properties
- If you are a specialist landlord
- If you are renting out a room in your main home beyond the Rent a Room Scheme threshold
- If you are living abroad and renting out a property in the UK
- If you are living in the UK and renting a property abroad
- If you are renting out a holiday home even if you use it yourself
The scheme however cannot be used by companies or agencies renting out residential properties.
The LPC is an opportunity brought forward by the HMRC to help people to come forward and voluntarily disclose their tax errors. However if someone chooses to not cooperate and keep the tax errors hidden, then the person could be landing themselves in a bigger soup as if the HMRC finds out the errors from other sources then the department would have the rights to open up an investigation against the said person. The investigation in question could even take the path of a criminal prosecution if the HMRC finds incriminating evidences against the person.