The Revenue is on the trail of £550m missing tax and is urging landlords to come clean or risk higher penalties.
Don’t get caught out by the following common rental income misconceptions:
- I’m in the armed forces, so we don’t need to declare our rental profits…
Wrong – you do still need to declare them.
- I don’t need to declare my rental profits as I only rent my house out because I’m drafted overseas…
Wrong – you still need to declare them.
- I don’t make a profit, so I don’t need to tell HMRC…
But are you making a profit in the eyes of the tax man! If you have a repayment mortgage then it is quite likely you are actually making a profit. And if you are genuinely making a loss then it is in your advantage to report this to HMRC.
- My Wife / Partner doesn’t need to declare it because I have…
Wrong – if a property is jointly owned you each need to declare your share of the income.
HMRC are running a Let Property Campaign to encourage landlords to come clean and tell them about their rental property before they track you down.
HMRC can contact letting agents for a list of landlords, scrutinise ‘property to rent’ websites/ newspapers and they already hold information on those who receive tenants housing benefit directly and those who have used the Deposit Protection Schemes, so if you are a landlord then act now.
It will be in your best interest to volunteer the information than if you try to ignore it and HMRC catch up with you!
Contact us now or download the RENTAL income & expenses form and send it back to us! – We can HELP!
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