HM Revenue and Customs (HMRC) is giving landlords the chance to come clean over whether they owe tax as part of a new campaign targeting the sector.
It is believed that up to 1.5 million landlords may be underpaying up to £500 million in tax every year.
According to independent chartered accountants WBV Ltd HRMC is offering landlords the opportunity to come forward voluntarily during the campaign, which is expected to run until March 2015.
Said WBV director, Stuart Harries, “Landlords that come forward voluntarily under the scheme to disclose any unpaid tax, whether through misunderstanding the rules or deliberate evasion, will receive more favourable terms and better penalties, than if they were targeted by HMRC.
“From this year, any landlords that have not declared all their rental income may be contacted by HMRC. Once this happens they will lose their opportunity to a make a disclosure as part of the campaign. If a landlord is targeted by HMRC, they may face penalties of up to 100% of the tax due, together with a possible criminal prosecution.”
The disclosure campaign is open to all residential property landlords that, according to HMRC include, those that have multiple properties and single rentals, as well as specialist landlords such as students or workforce rentals or holiday lets.
NOTES TO EDITORS
For further information about the disclosure scheme please contact:
Stuart Harries
WBV Limited
Tel: 01639 635555
Email: stuartharries@wbv.ltd.uk
The Third Floor
Langdon House
Langdon Road
SA1 Swansea Waterfront
Swansea
SA1 8QY
Tel:01792 652108
Woodfield House
Castle Walk
Neath
SA11 3LN
Tel: 01639 635555
WBV Ltd is a member of the prestigious UK200 Group of independent practicing chartered accountants with offices throughout the UK and associates overseas.