LETTINGS NEWS: HMRC delays for landlords’ disclosures
Landlords disclosing buy to let and other property investment profits to HM Revenue & Customs currently face delays of up to six months to have their disclosures analysed. The delays have arisen following the overwhelming success of HMRC’s ‘Let Property Campaign’ which gives landlords the opportunity to come forward and declare any unpaid tax, whether through misunderstanding of the rules or deliberate evasion. Landlords who declare their unpaid tax through HMRC’s campaign will still be subject to pay interest and possible penalties but those who don’t come forward will face higher penalties and even the prospect of criminal prosecution.
HMRC estimates that up to 1.5 million landlords may be underpaying up to £500 million in tax every year. It is confident it will be able to identify landlords who have not paid what they owe through information already held on its digital intelligence system, Connect, and by cross-referencing letting agents’ returns with those of their landlord clients. In the meantime, those who have already come forward may have to wait to find out what they owe.