Have you declared your rental income? If not, HMRC will find you!

The Let Property Campaign (LPC) was created by HMRC for landlords who have not declared all their rental income to come forward to disclose any unpaid tax.

The LPC is applicable to landlords renting out the following types of properties:

• A single property
• Multiple properties
• A room in their main home (if the income exceeds the Rent a Room Scheme threshold)
• Holiday lettings
• Properties in the UK while living abroad or intending to live abroad for more than 6 months

HMRC has harsh penalties for individuals that are not disclosing rental income. Penalties can be as high as 100 % of the unpaid tax due as well as interest being charged. The purpose of the LPC is for landlords to disclose rental income, therefore HMRC has given reduced penalties for unpaid taxes declared through an LPC. These penalties are shown below:

• Within 12 months: 0% – 30% (unprompted), 10% – 30% (prompted).
• Over 12 months: 10% – 30% (unprompted), 20% – 30% (prompted).

• Deliberate errors: 20% – 70% (unprompted), 35% – 70% (prompted).
• Deliberate and concealed errors: 30% – 100% (unprompted), 50% – 100% (prompted)

The penalties can be reduced if you act now, before HMRC find you!

We at PJCO have a specialised Buy-to-let team who and can help with creating an LPC return, submitting an LPC to HMRC or any queries relating to property businesses.

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Please get in touch on 01273 441187 or book a discovery call with one of our expert accountants. 
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