With the recent ending of the Property Sales Campaign on 6 September 2013, HMRC are continuing the theme of targeting property owners who have not declared the correct tax by offering a new campaign aimed at undeclared rental income.
HMRC are looking at landlords who own properties and let them on a variety of different basis aside from long-term lets including holiday lets, student lets and workforce lets.The campaign will last an unusually long time of 18 months during which taxpayers can come forward at any point with a disclosure of their undeclared income from rented properties.
HMRC can rely on a wealth of available information to identify landlords who have either not declared any rents or are not declaring all rents received. This can be from a number of sources including computerised records from other government agencies and local authorities, freely available information from the internet and information gathered from HMRC surveillance or tip-offs from the public. Disgruntled tenants can be a good source of information to HMRC!
As ever, lower penalties can be negotiated for those who come forward as part of the campaign. Those who do not come forward can expect higher levels of penalties should HMRC later catch up with them and in certain cases criminal prosecutions can also occur. HMRC has estimated that 1.5 million landlords underpay tax totalling £500m every year and would therefore view this as a big opportunity to claw some of this tax back, hence the longer than usual period the campaign is open.
If you are concerned by this approach by HMRC and require any advice then please do not hesitate to contact us for further details.
Our farming partner, Eirian Humphreys, who is building a substantial reputation in the area for his farming knowledge, was recently asked to give a presentation on Succession Planning for farming for Farming Connect in Newcastle Emlyn.
The talk, which was attended by many local farmers, gave Eirian the opportunity to discuss both the pitfalls and opportunities when looking at the farming business with a view to 'passing on' the farm to the next generation. He also highlighted topical tax matters and covered a wide range of agricultural issues which are relevant in today's society.
Future seminars and conferences are to take place and further details can be found by contacting email@example.com
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