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Stopfords

To Disclose or Not to Disclose, that is the question!

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HMRC introduced their “Let Property Campaign” allowing landlords to make “Voluntary Disclosures” to them regarding undeclared rental income in 2013.

Following a Freedom of Information (FOI) application by Saffery Champness it has come to light that less than 3% of those targeted have come forward to make the relevant disclosure(s) to HMRC.

Since the campaign started and up to 2018, approximately 35,000 people have made voluntary disclosures to HMRC which equates to 2.3% of the individuals identified.

In terms of additional tax revenues HMRC have only recovered approximately 17% of the what they estimated (£500 million) or in cash terms £85 million.

Over the past decade the UK’s tax system has become more complex and sophisticated, and there has definitely been a shift by HMRC to targeting non-compliance and putting the onus back on to the taxpayer to effectively self-assess and advise them of undeclared income.

The question is, have you got any rental or other income that needs disclosing to HMRC?

If so, now is the time to act and contact Stopfords (Mansfield) Limited to discuss what steps you need to take to bring all your affairs up to date.

It is vital that a voluntary disclosure is made to HMRC rather than them contacting you, as the penalty regime is more severe for a non-voluntary disclosure.

A member of Stopfords (Mansfield) Limited Tax Team is available on 01623 420 269.

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