Landlords - Do you declare your rental income?
HMRC takes a keen interest in landlords who may not be declaring their rental income.
They are continuing to tighten up on lost income from this area with the Let Property Campaign which is specifically targeted at residential property landlords with:
student or workforce rentals
those renting out a room in their home at a rate above the rent a room scheme threshold
Airbnb have also had to hand over to HMRC the income details of its estimated 225,000 UK hosts for the tax years 2017-18 and 2018-2019.
Bynot declaring rental income, you aren't just risking a fine from HMRC - you are jeopardising your future mortgage prospects too.
Lenders are increasingly asking to see Tax computations to evidence rental income - both on Buy-to-Let mortgages, and residential mortgages where previously a rental property in the background may have been ignored.
And if you cannot evidence this, then you may find you cannot obtain a mortgage.
The HMRC campaign offers landlords lower penalties if they make a full disclosure rather than waiting for HMRC officials to discover they have not paid enough tax.
If you need advice on how best to declare previously undeclared income then speak to an accountant.
Please contact us or call Rachael on 01323 436680 and book a FREE initial consultation today.