If you’re a landlord, you might have heard of HMRC's recent announcement about the Let Property Campaign. This initiative encourages landlords to come forward and address any unpaid taxes on rental income, regardless of whether they own a single property, multiple properties, a vacation home, or rent out a room above the Rent-a-Room Scheme threshold.
HMRC has made it clear that landlords who haven't disclosed their rental
income need to take action immediately. After disclosing, they have a 90-day
window to figure out and pay any tax that's due. Not doing so could result in
hefty fines or even legal proceedings if HMRC discovers the unpaid taxes at a
later stage.
Landlords will owe tax on their rental income, minus any allowable
expenses and deductions. The amount of tax owed depends on their individual tax
bracket (basic or higher rate). It’s best to seek the help of accountants for landlords if you need assistance.
Other scenarios that
might initially seem innocuous, like leasing a property to help cover care home
expenses or renting out a flat to college students, can also lead to errors in
reporting rental income.
Note that claiming
ignorance about the taxability of rental income in these situations will not
absolve you of responsibility, so consult with your accountant to make sure
that you’re staying compliant.
How our accountants for landlords can help
At Allenby Accountants, we have a team of experienced accountants who
specialise in landlord taxes and can guide you through the process of
disclosing and paying rental income taxes. Our expert knowledge of the tax
system ensures that all your rental income is declared correctly, minimising
the risk of penalties or legal action from HMRC.
Call us today at 0208 914 8887 to schedule a consultation.
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