What is it
Some readers may be aware of recent press announcements by HMRC in connection with the up and coming buy to-let property amnesty. The intention of the scheme is to attract landlords who have not previously reported rental profits to HMRC and encourage them to bring their tax affairs up to date. This involves registering with HMRC, quantifying the tax exposure and negotiating the penalties
Benefits
The major benefits of making a submission under this scheme are as follows:
- Reduced level of penalties: A disclosure under the amnesty would be considered ‘voluntary’ hence any penalties would be agreed between the individual and HMRC. As a result they would be significantly smaller than the penalties that HMRC could impose if they ‘discovered’ the matter.
- Administratively simple: This should allow individuals to regularise their tax affairs without having to amend prior year tax returns.
- It also offers peace of mind to anyone in arrears with this area of their tax affairs and may contribute towards a relationship of good faith with HMRC.
How we can help
Although the amnesty is not officially open we have spoken to HMRC and they have indicated that they would accept submissions under the scheme. Our approach would be as follows:
- Work with you to quantify the tax exposure on your let property income for all years concerned.
- Correspond directly with HMRC on all matters associated with the exposure so it is presented in the best frame of light.
- Liaise with HMRC directly in connection with the penalty negotiation process.
- Guide you through the process of closing out the disclosure and provide you with support in relation to your on -going tax affairs (tax returns etc.).