HMRC estimate that, currently, they are missing out on £500 million of tax,
They have announced the latest in their ever-lengthening list of initiatives to get non-compliant taxpayers to confess to their sins!
HMRC estimate that, currently, they are missing out on £500 million of tax, as a result of some 1.5 million landlords failing to declare the income from letting activities.
As in all previous initiatives, there is a “softly-softly” approach for those landlords who come forward and declare tax owed from earlier years. Tax and interest will still be payable, together with penalties – but less severe penalties than if HMRC get to you before you report to them!
The message is clear – HMRC believe there is a lot of unreported income from lettings and they are using their intelligence software “Connect”to find the landlords who are failing to report their income.
If you are a resident of the UK, then all of your rental income, even that arising on foreign holiday properties, must be declared and HMRC have found many a non-compliant landlords merely by trawling the holiday property listings on the internet!