HMRC is running another campaign, to enable people to bring their tax affairs up to date in respect of undeclared rental income.
Some people don’t realise that even if a rental property may be not making significant profits, it still needs to be declared to HMRC.
And, once all the allowable expenses are accounted for, they could in fact also be losing out on potential losses that could have been carried forward.
Income from rental can also apply to rooms in the main residence, should the total income exceed £4250pa.
Under the terms of the campaign, the income is disclosed to HMRC and as a result the best possible terms are given – otherwise there can be significant penalties for failing to disclose taxable income.
There are further details available on the Let Property Campaign on gov.uk.
If you know anyone who this could apply to, please do put them in touch – we can assist with preparation of the rental accounts/tax returns to bring matters up to date, as well as helping in future years to ensure that tax deadlines are met.