Landlords have “responded positively” to the HMRC ‘Let Property Campaign’ that encourages disclosure of past rental profits for tax purposes, according to the Residential Landlords Association (RLA).
In fact, the response has been so overwhelming, landlords could face a six month wait for disclosure forms to be accepted.
Rita4Rent, the RLA’s tax specialist partner, has spoken directly with the HMRC and has discovered that landlords are flooding the helplines, scrambling to understand obligations.
The tax man warned landlords last year that they needed to disclose their rental incomes, or heavy penalties could be expected for non-compliance. However, the HMRC has proved that working with landlords pays dividends with so many landlords coming forward to potentially benefit from more favourable terms.
HMRC provided a set of tools to help landlords understand their responsibilities and provide clear guidance on how to submit a report.
Help in registering with the HMRC, self-assessment tax return forms and guidance, and other useful bits of information are all provided by HMRC.
Whilst the campaign is likely to run for up to four years, landlords should ensure their tax affairs are in order. The RLA strongly urge all landlords to check their claims, use the tools at their disposal and demonstrate the compliance of landlords in the private rented sector.
Landlords needing further information or advice can contact the RLA’s recommended tax advisor, Rita4Rent.