Last Updated on July 15, 2014 by admin
HMRC launch tax initiative open to holiday homeowners
As a holiday home owner does getting the best possible terms on the tax you have to pay on your property sound like an attractive proposition? HMRC Let Property Campaign allows those who haven’t declared letting income to do so!
We’re currently highlighting the ‘Let Property Campaign’ being run by HM Revenue and Customs (HMRC) that is open to those renting out a holiday home to paying guests and have yet to declare the income.
How do you get the best possible terms for your tax payment?
If you currently owe tax from the letting income gained from your holiday home you’ll need to declare that income by making what is called a voluntary disclosure to HMRC. In order to gain the best possible terms for your tax on this income you’ll need to do one of two things:
- Complete the HMRC Let Property Campaign Notification form which you can access by clicking here – HMRC Let Property Campaign
- Call the Let Property Campaign Helpline on 03000 514 479 to discuss your options.
Once you have consulted the helpline or submitted your notification form you’ll have three months in which to pay your tax bill.
What do you do if you’re unsure if you need to declare tax under this scheme?
If you’re currently unsure if you have unpaid taxes for your let property or if you should be declaring taxes under this scheme you can visit this link – HMRC Let Property Campaign Questionnaire
You’ll answer a few simple questions and gain guidance on what you need to do that is specific to your circumstances.
The risks of not declaring tax on your holiday letting income
If you’ve made an error in paying or calculating your tax bill as a result of misunderstanding or deliberately paying the wrong amount it is strongly advised that you inform HMRC of any mistakes before they discover them.
The HMRC are actively cracking down on tax evasion by all landlords, whether residential or in this case those who rent out holiday homes. They’ll use information they have about the property, the marketplace and other information they hold on customers to identify people who might not have paid what they owe.
If you don’t make a voluntary disclosure now and HMRC finds out later, you could suffer higher penalties and face criminal prosecution.
Please remember this article is only a general outline of the tax schemes offered by HMRC. If you are looking for tax information or advice please contact HMRC directly or seek professional advices.
Learn more about HMRC tax campaigns by watching this video
The vast majority of holiday home owners who let their property reading this will already be declaring the income received after offsetting allowable running expenses such as their holiday home insurance premium. As holiday home insurance specialists we understand the needs of holiday letting owners and our policy includes valuable legal expenses cover for HMRC taxation investigations provided that the insured has taken reasonable care to submit complete tax returns within statutory time limits. For more information on how a specialist insurer can help and support your holiday home business, please give us a call on 01237 429444.