HMRC has
announced the latest in their ever- lengthening list of initiatives to get
non-compliant taxpayers to confess to their sins!
HMRC
estimate that, currently, they are missing out on £500 million of tax, as a
result of some 1.5 million landlords failing to declare the income from letting
activities.
As in all
previous initiatives, there is a “softly-softly” approach for those landlords
who come forward and declare tax owed from earlier years. Tax and interest will still be payable, together
with penalties – but less severe penalties than if HMRC get to you before you
report to them!
The message
is clear – HMRC believe there is a lot of unreported income from lettings and
they are using their intelligence software "Connect"to find the landlords
who are failing to report their income.
If you are
a resident of the UK, then all of your rental income, even that arising on
foreign holiday properties, must be declared and HMRC have found many a non-compliant
landlord merely by trawling the holiday property listings on the internet!
If you are
in the position of having unreported letting income (UK or overseas) then
contact us to discuss your situation at: ppeterson@petersonsims.com
gsims@petersonsims.com