HMRC Let Property Campaign

HMRC Let Property CampaignWhat Is The HMRC Let Property Campaign?

The HMRC Let Property Campaign is a facility that allows landlords to declare previously undeclared income from renting out property (letting income).

Who Can Make a Disclosure Under the Let Property Campaign?

You can make a disclosure under the ‘Let Property Campaign’ if you…

  • Rent out a single property
  • Rent out a portfolio of properties
  • Are a specialist landlord, e.g. student lets or contractor accommodation providers
  • Live abroad and rent out a property in the UK
  • Live in the UK but rent out property overseas
  • Rent out a property you live in part of the time e.g. a holiday home

Who Can’t Make a Disclosure Under The Let Property Campaign?

The let property campaign can’t be used if your renting property though a company or trust. It also can’t be used if you rent out commercial property.

Why has HMRC launched the Let Property Campaign?

HMRC has taken a particular interest over the last few years in residential landlords. Specifically, those who aren’t currently, or have never, declared income from renting out residential property.

This is partly because of the rule changes around being able to claim mortgage interest as an allowable expense for tax purposes. By 2020 landlords won’t be able to claim any interest on mortgage repayments. With this change alone, it could be argued that landlords are more likely than ever to try to avoid paying tax on rented properties.

Bad News For Landlords Whom Avoid Tax…

The tools used by HMRC in an attempt to catch landlords are more sophisticated than ever. HMRC now has a £1 billion ‘super computer’ that collects data from many different sources. These are sources such as land registry records for example.

It doesn’t take much imagination to see how the computer may  come in useful. For example, it might see someone’s name listed against several properties. I might then forward the information to a HMRC case worker for further investigation.

What To Do Next

If you’re a landlord and have undeclared property income, then call us today. We’ll talk you through the various options (such as the ‘let property campaign’) and help to identify the best way forwards.

T M Sterling are experts in managing complex tax problems. We help clients across the UK to get their taxes back on track. If you have questions regarding the HMRC Let Property Campaign or any other tax related issue then please get in touch. Simply use the ‘Contact Us’ link at the top of our website – www.tmsterling.co.uk

Tax Avoidance Scheme Help

Tax Avoidance Scheme Help

Need Tax Avoidance Scheme Help?

Reliable tax avoidance scheme help can be hard to find. This article will give you a useful over view of HMRC’s view of tax avoidance schemes. If you require specific help regarding your situation then please get in touch.

Although there are many different types of Tax Avoidance Scheme, one of the most common is the ‘Contractor Loan Scheme’. This is when the person who has entered into the scheme receives ‘loans’ via the scheme operator. In theory, as the amounts received are loans and not remuneration then this is not income and is therefore not taxable.

In reality, because these loans are never actually repaid, HMRC classes them as ‘disguised remuneration’ and are therefore liable to tax.

Two Common Myths Regarding Tax Avoidance and Contractor Loan Schemes

‘My Scheme Was HMRC Approved’

This is incorrect. Although you may have been led to believe otherwise when you chose to enter the scheme, HMRC has never approved any tax avoidance scheme to date. It’s simply not in their best interest to do so.

‘I Was Told That I Didn’t Have To Declare My Scheme’

Again, this is incorrect. All Contractor Loan Schemes are must be declared to HMRC. When a scheme is declared it is given a scheme reference number. The promoter of the scheme must provide this number to anyone who uses it.

Help From The Tax Avoidance Scheme Provider

Unfortunately, many of the companies that provided the tax avoidance schemes to users are no longer around to pick up the pieces. Some have simply shut up shop, whilst others have entered bankruptcy or voluntary liquidation. This is of little help to the user of the scheme, who’s left to deal with HMRC alone.

HMRC Deadline

HMRC has recently highlighted 30th September 2018 as a deadline for notification. If users of Tax Avoidance Schemes don’t provide the necessary details to HMRC by this deadline then there are likely to be in a much less favourable position.

HMRC has indicated that it intends to ‘punish’ users whom don’t declare their involvement by incorporating all years for which the scheme was in place into a single tax year. Therefore, this could leave many users with massive tax liabilities.

Follower Notice

Once a tax avoidance scheme fails i.e. a court rules that the scheme represents disguised remuneration, HMRC may then issue a ‘Follower Notice’ the anyone whom has entered into a similar scheme. This is essentially HMRC requesting that you rectify your tax affairs.

Failure to comply with the follower notice is likely to result in a penalty of 50% of the tax due.

Next Steps

If you need advice concerning a Tax Avoidance Scheme and wish to speak to an expert, please get in touch. You can do this by clicking the clicking the ‘Contact Us’ link at the top of our website – www.tmsterling.co.uk

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