Let Property Campaign (LPC)
Let Property Campaign
Getting Your Rental Income on the Books with HMRC's Let Property Campaign
Do you own a rental property in the UK whose income you haven't declared to HMRC? Or, have you accidentally failed to report rental earnings in previous tax years? .
Don't panic - HMRC's Let Property Campaign can help you get your rental income on the books and avoid harsh penalties.
What is the Let Property Campaign?
The Let Property Campaign allows landlords to declare any previously undeclared rental income going back up to 20 years. It provides a straightforward way to disclose forgotten rental earnings without facing the typical penalties.
The campaign has been running since 2013 and is an easy route for rental property owners to get into the tax system if they've accidentally or unintentionally not reported earnings.
Can I Get Away Without Declaring my Rental Income?
In short, no. Trying to conceal rental income long-term is a bad idea. HMRC has several ways to identify undeclared income through connecting Land Registry records, Council Tax bills and self-assessment tax returns.
If HMRC sends you a letter suggesting you may have failed to declare rental income, you'll face much larger fines than voluntarily dsclosing through the campaign. Using a letting agent doesn't remove your requirement to declare income tax-wise either.
What If I Don't Have Records?
Lacking detailed records of your rental income history doesn't have to be a roadblock. There are several options:
- Dig out old bank statements showing rental transfers
- Check for tenancy agreement records from letting agents
- Estimate monthly rental amounts based on recollection
It's better to provide reasonable estimates than not disclose at all. Our accounting experts can help reconstruct records where needed.
What About Discovering More Income Later?
When you disclose through the Let Property Campaign, you sign to say it's the full amount. If more rental income emerges down the line that you failed to declare initially, HMRC will hit you with much tougher fines.
Be completely transparent from the outset.
How I Can Help
If you need advice on how to proceed, call my office and we can discuss your current situation. Whether you are renting out single or multiple properties, a specialist landlord, letting out properties in the UK or abroad, and other related situations. I will work with you to accurately calculate and declare all your rental income across the period.
This will ensure you avoid potential tax investigations or penalties.
