TAX WARNING FOR RESIDENTIAL LANDLORDS

DSH Accountants Kent
Landlords with undeclared income from residential property lettings are being urged to get their affairs up to date or face tough penalties from HMRC.

Launched in 2013 and currently without an end date, the Let Property Disclosure campaign gives landlords the opportunity to disclose all of their income and pay any outstanding tax on better terms and with lower penalties than if HMRC discovers discrepancies for itself.

“Landlords who voluntarily make an accurate disclosure are likely to face a maximum penalty of 0%, 10% or 20% on top of the tax and interest due depending on the circumstances,” said Steve Carpenter of DSH’s Maidstone office, who added there would be higher penalties for any offshore liabilities.

“However, landlords who have not disclosed this information and who are subsequently targeted by HMRC could face penalties of 100% of the tax and interest due, plus the threat of a criminal prosecution.”

Steve added that to take part in the campaign, landlords must first notify HMRC that they wish to do so, then prepare a disclosure before making a formal offer together with payment.

DSH-Steve-Carpenter“HMRC could close this campaign at any time as there is no end date currently specified,” said Steve. “That could leave landlords who have outstanding tax affairs without enough time to complete all three stages of disclosure, potentially facing a huge fine and a criminal record.

“We strongly recommend landlords talk to their professional advisors now and begin any disclosure process they need to, before time runs out.”

Anyone with concerns over their tax affairs can contact Steve Carpenter on 01622 690666 or visit www.dsh.co.uk.

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