HMRC have launched a new ‘One to Many’ letter campaign, targeting rental property landlords who are registered for Self Assessment but who they suspect have not declared income received from property lettings.

800 letters are being sent out, and recipients must respond to HMRC, either confirming that tax is due on the income received or that they do not have any income to disclose. If no response is made, HMRC will open a compliance check and potentially impose penalties.

The nudge letters remind the taxpayer that if they have disposed of a property that they received rental income from in the past, they should still ensure this is declared to HMRC.

Taking action

Landlords receiving a letter from HMRC must respond in one of two ways

  1. Income to declare: this can be done online at GOV.UK by searching ‘Tell HMRC about underpaid tax from previous years’; or by telephone on 0300 123 0998, quoting the reference at the top of the letter. Payment can be made using the same online service and this must be done within 90 days of receiving the payment reference number.
  2. No income to declare: let HMRC know by calling them on the number above, again quoting the reference at the top of the letter.

Generally, there will be nothing to declare if:

  • Lettings profit has been correctly included on the tax return each year; or
  • Profits have only just started to be made and will be included on the next tax return.

How M+A Partners can help

M+A Partners team of experienced property tax experts provide specialist advice to guide you through the complexities of tax, helping you to plan ahead and remain compliant.

There are different processes through which you can make disclosures of income owed to HMRC and it is important to ensure you are using the disclosure service that is most appropriate for your circumstances.

If you are a landlord and would like further guidance on making a disclosure or ensuring your tax affairs are in order, get in touch with me using the details below or email enquiries@mapartners.co.uk

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