HMRC has started a second campaign aimed at landlords, and undeclared rental income. The idea is to bring the tax affairs of landlords who are not declaring their income up to date. The campaign is targeted at both landlords and non resident landlords living outside the UK.
HMRC are offering under the campaign the best possible terms for income that has not been disclosed when it should have. Sizeable penalties can be imposed if you don’t submit any rental income on time. If you have misunderstood the rules and have a reasonable excuse HMRC will try and help.
Some landlords are under the impression that if they don’t make a profit they won’t have to fill in a tax return with their rental income. This is not the case and can lead to serious consequences.
Important
It’s common that once all allowable expenses are brought into the equation that a loss is made in any one tax year. Any losses can be carried forward into futures years, which helps reduce any tax owed in the future, meaning that by not declaring rental revenue the potential benefits will be lost.
More details on the Let Property Campaign can be found here
You can you use our UK landlord FAQ’s and UK non resident landlord FAQ’s to help answer some of your tax related landlord questions.
