What Do You Need To Know About The Let Property Campaign?
The Let Property Campaign, or LPC for short, is different to other HMRC campaigns. This campaign has not got a closing date so that it is no longer available.
June 14, 2017 ( datsyn.com) – The Let Property Campaign, or LPC for short, is different to other HMRC campaigns. This campaign has not got a closing date so that it is no longer available. It is a campaign that must be used by people who have undeclared rental income.
What Is The Let Property Campaign?
The Let Property Campaign is for people who have income from letting out a residential property to put their tax affairs in order. To participate in the Let Property Campaign you must have rental income to declare to HMRC. The majority of people don’t notify HMRC, as in many cases, when you take costs and mortgage expenses away from the rental income there is often little left over.
Regardless of whether you’re making a profit from your rental income or not, it must be declared to the HMRC. The individual also needs to have registered for self-assessment, and declared the profit or loss on their tax return.
Putting Tax Affairs In Order
The Let Property Campaign isn’t just about putting tax affairs in order in terms of rental income. The household must also declare any other undisclosed income. For instance, if somebody who is self employed has not declared all of their income from their ventures, they can use the LPC to regulate all of their tax affairs in one go, providing they qualify on the grounds of some of the undeclared income coming from rental income.
Once you’ve applied for the Let Property Campaign and it has been accepted, HMRC are entitled to ask questions. However, as long as you provide good information to the HMRC they generally get accepted.
HMRC are only interested in getting the LPC disclosure form if tax is due. HMRC sometimes fail to automatically register someone for self assessment when they register to take part in the Let Property Campaign, so it’s advisable you register at the same time you notify HMRC about LPC.
HMRC claim that this campaign gives an individual a more favourable penalty position, when compared to making a disclosure by other routes. This may not necessarily be true for some people, however, it is the only route for people who have undeclared rental income. If you require more information about the Let Property Campaign and would like help, you can give Gilbert Tax a call.