We were contacted by a client from East London who had several rental properties for which the rental income had not been declared for over 17 years. The client had genuine reasons for this but was nervous about coming forward and making a disclosure. Before approaching us, the client had been to other tax advisers and was under the impression that declaring this undeclared income through tax returns would be the best option.
From our initial meeting with the client we introduced him to HMRC’s Let Property Campaign (LPC), a voluntary tax disclosure facility as a much better alternative to what he had been previously advised.
The Let Property Campaign (LPC) disclosure facility was introduced by HMRC to allow landlords (like this client of ours) to come forward voluntarily and to bring their tax affairs up to date. Under the Let Property Campaign (LPC) voluntary disclosure facility, taxpayers can avail the best terms for settling the tax liability on their undeclared rental income.
Having gathered the basic facts and information from the client, our team immediately made an initial disclosure to HMRC to notify our client’s intention of disclosing undeclared rental income. Our team then worked very closely with the client to prepare the disclosure. Given that the information spanned a period of 17 years, completing the voluntary disclosure was a very prolonged process. We used our experience and expertise to guide the client throughout the whole process and in particular where it was difficult to collate information and documents. Our final voluntary tax disclosure was put forward to HMRC and was accepted without any queries or questions. We agreed a payment plan for the client to clear his tax liability, which to the client’s joy, was much lower than what he had budgeted initially.
Over the years, HMRC have setup various routes which allow tax payers to come forward with their undeclared income and pay taxes that they owe. These include Let Property Campaign (LPC) and the Worldwide Disclosure Facility (WDF). Coming forward under these voluntary tax disclosure facilities can be considerably economical as HMRC take a more lenient stance on penalties in comparison to penalties charged under tax return route. Despite their advantages, the Let Property Campaign and Worldwide Disclosure Facility (WDF) Facility are a specialist area and are best handled by a firm of experienced tax advisers like ourselves. Our team of tax experts have extensive experience of helping clients with these disclosures and our firm has a 100% acceptance record for these voluntary disclosures.
If you are a landlord who has undeclared rental income or income from any other sources and have either been prompted by HMRC to make a voluntary tax disclosure or would like to do so unprompted, please feel free to contact us for a free and confidential consultation with one of our tax experts.