Landlords, Letting Agents – HMRC issues Statutory notices | Bradleys

HMRC is knocking on the doors of letting agents with statutory notices demanding details of rents they have collected on behalf of private landlords. According to HMRC close to 900,000 landlords across the UK haven’t declared their rental incomes, causing the treasury a loss of at least £550m a year. With letting agents being forced to disclose details, landlords who don’t file their taxes or inflate claims for letting expenses to pay less tax will have to pay up or face higher penalties. In support of landlords, HMRC has launched a Let Property Campaign which encourages landlords to come forward and bring their tax affairs up to date. However, landlords will still have to pay a penalty of up to 20% plus any tax and interest. To be eligible for this campaign, a landlord will have to meet certain thresholds. Trusts and companies renting out a property, and people who deal in commercial property, are not eligible for this scheme. To check if you are eligible and to help you make the right decision about the action you need to take use this HMRC questionnaire.