Although the HMRC campaign will be directed at all residential landlords, HMRC is particularly focusing on:
Landlords who let to students/groups of workers.
Landlords who let out holiday accommodation.
Landlords who let out properties for multiple occupancy.
When the Let Property Campaign was announced by HMRC recently, the lack of supporting detail was noticeable. In the past, the launch of a campaign would be accompanied by a clear timetable of action and a raft of information on the HMRC website. Campaigns involving the declaration of previously undisclosed income/over claimed expenditure have typically required the completion of an online notification form by a certain date and the complete disclosure and full payment of additional tax/interest/penalty by a secondary date.
Efforts are now being made to get an online disclosure notification link and, apparently, a separate team of HMRC officers is also being brought together to handle this campaign. Until the link is available, HMRC is handling any such disclosures manually.
The current procedure is:
Initial contact should be made with the Let Property Campaign team.
The HMRC officer will request some basic information about the person wishing to make a disclosure including their name, address, national insurance number or Unique Taxpayer Reference (UTR), date of birth and contact telephone number.
A disclosure record will then be set up by HMRC and a reference number allocated.
A blank disclosure form is then issued by post with a three month deadline for completion.
The procedure outlined above can be followed at any time if someone wishes to make a voluntary disclosure of income to HMRC, in order to secure a beneficial penalty rate.
However, disclosures will not be accepted if:
They are made by people who are already under investigation by HMRC.
They are inaccurate or incomplete.
HMRC believes the money that is the subject of the disclosure is the proceeds of serious organised crime.
By David White, Partner, Charterhouse, based in Beaconsfield
David White is an equity partner in Charterhouse a practising firm of Chartered Accountants based in Beaconsfield and Harrow. David is Charterhouse through and through having been with them for 30 years...