Property Let Campaign - Unprompted

LET Property Campaign

There is still an opportunity to come forward and inform HMRC in regards to declaring previously undeclared Rental Property Income even if it means going back several years to the beginning

Unprompted disclosure is always more beneficial than prompted and in some cases can result in lower late filing penalties but this will be at the discretion of the individual HMRC Inspector dealing with the case

It might be difficult in some cases to gather older information but the rental income statements can be requested from the Estate Agents if one has be used or bank statements if self managed.

In some cases rent could have been received in cash but then if there is a mortgage on the property then most likely the rental income would have exceeded the mortgage costs plus have to factor and take into account the other expenses such as the Gas certificate, insurance, Electrical report, repairs and so on

For the expenses if supporting documents along with proof payments towards the expenses can be provided and cross referenced otherwise there is a simple option to just offset £1,000 trading allowance against the rental income each year to determine the profit

Please note there is only one £1,000 trading allowance per tax year and it is the total so if a Landlord has more than one property there is not £1,000 trading allowance for each property

However, if there are joint landlords of one property and it is more beneficial to claim the trading allowances rather than the expenses than they are entitled to £1,000 trading allowance each

The Mortgage interest used to be 100% allowable as an expense but over the years it has reduced

The rules moving forward are relief is at the lower of mortgage interest rate or rental profit

HMRC will look at documents such as

Land Registry

Deposit Scheme

Council Tax Bills

Estate Agents report Landlords each year

Housing benefit claims on a property

If you require any assistance in this area

Please feel free to call 01212852534

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