HMRC Want Landlords To Get Tax Affairs In Order

HMRC Want Landlords To Get Tax Affairs In Order

HMRC Want Landlords To Get Tax Affairs In Order

UK property investors and private rental sector landlords are being offered tax training online by Her Majesties Revenue and Customs (HMRC), in order to make it easier for them to understand when and how to pay tax on property assets.

The computer-based training tutorials are aimed at property investors and private rental sector landlords who are renting out property and have not registered to pay tax, or have under-declared their rental incomes or have under-paid tax.

The tax training is part of HMRC’s Let Property campaign, and it is understood that HMRC are also in discussion with various landlord associations in order to make the training available to their members.The Association of Residential Letting Agents (ARLA), the National Landlord Association (NLA) and the Residential Landlord Association (RLA) have indicated that they will make the training available to their members.

The bite-sized computer-based tax training tutorials will explain to landlords:

  • When and how property letting starts, and what to do
  •  Various types of income that can be generated by property, including:
    • Furnished
    • Unfurnished
    • Holiday lets
    • Rent-a-Room
    • The Non Resident landlord Scheme
  • The correct treatment of income and expenditure, both revenue and capital
  • Tips on record-keeping
  • How Property income is taxed
  • Property disposal, Capital Gains and Inheritance Tax
  • Tax return filing and paying dates – and when and how
  • PAYE and VAT obligations

Details  of the Let Property Campaign and the bite-sized tax training tutorials are available online.

HMRC have already begun requesting information from letting agents about all rental properties managed on behalf of landlords.

HMRC are also writing directly to around 40,000 UK based landlords about their tax liabilities on rental properties, however if landlords act first it could help to mitigate any financial penalty imposed by HMRC.

So far, more than 2,500 property investors and landlords renting out properties in the UK private rented sector (PRS) have contacted HMRC voluntarily in order to put their tax affairs in order under the Let Property campaign.

Laura Pollard, head of HMRC campaigns, said: “This package has been developed to help landlords get their tax affairs right from day one. They can also use it to keep them on track in the future. Landlords who have failed to register with HMRC, or who have under-declared or under-paid tax risk being checked by HMRC. If they wait for that to happen, they won’t be able to sort out their tax affairs under the best terms. If they are in any doubt, they should try the training and, if they think they need to bring their tax affairs up to date, they should contact us.”

Comments are closed.

There Will Never Be A Better Time To Invest In Property helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!