If you haven’t told HMRC about your rental income – there is a process to help you get up to date and avoid huge penalties.
If you rent out a residential property, HMRC will want to know the total amount received and the expenses you’ve paid for. It applies even if there were periods when the property was empty.
So what to do if you’ve missed the submission date for a tax year? Or even a few tax years?
There is a process that you can sign up to called The Let Property Campaign to cover situations like this. After signing up for this process, HMRC give you 90 days to send them the figures for the missing years and your tax liability will be calculated.
This means that penalties will be reduced because you made the initial step to admit you are late to HMRC. Also, if you cannot afford to pay the tax in a lump sum, HMRC will agree an initial payment with you and then monthly payments going forward.
The DDS form can be found on HMRC’s website; filling this in online will inform HMRC of your decision to sign up for the Let Property Campaign, and HMRC will send you a Disclosure Reference Number to use for the process of disclosing the information.