HMRC Tax Disclosure and the Let Property Campaign: Guidance for UK Taxpayers

Finding yourself owing further tax can be stressful, especially if HMRC is involved. For many people, the problems that arise are a result of mistakes, forgotten income, or changes to personal or financial circumstances that are not always deliberate.

HMRC recognises this and has schemes for making disclosures when the problem has been identified. These schemes allow taxpayers, like yourself, to rectify the problem.

This guide discusses how the tax disclosure system operated by HMRC works, how the Let Property Campaign is involved in the system, and when professionals make a real difference.

What Is HMRC Tax Disclosure?

Tax disclosure is the process of informing HMRC of income, gains, or tax not fully disclosed in the past. It can apply to one year or multiple years, depending on the circumstances.

The most common reasons for disclosure are unreported rental income, foreign earnings, unreported Capital Gains Tax on the sale of assets, or inaccuracies in previous Self Assessment tax returns. In general, taxpayers make disclosures as voluntary actions prior to an investigation being launched by HMRC.

Voluntary disclosure will always result in reduced penalties. It also provides the taxpayer with an opportunity to provide an explanation about the circumstances that led to the error. The explanation from the taxpayer is considered when calculating the penalty by HMRC.

How the Let Property Campaign Works

The Let Property Campaign is HMRC’s special disclosure facility designed specifically for landlords who have not reported rental income correctly. It applies to residential or commercial property landlords, whether they live in the UK or abroad, if they earn rental income from properties in the UK.

After the landlord has informed HMRC of their intention to disclose, they have 90 days to calculate their tax liability and submit the disclosure and payment to HMRC. The 90 days cover income tax, Capital Gains Tax where applicable, penalties, and interest.

The objective behind the campaign is to encourage the landlords to come out without fear of automatic investigation, provided the information is complete and accurate.

Why Accuracy Matters

HMRC expects these disclosures to be detailed and evidence-led. Where there are personal tax estimates, missing years, or expense claims that are incorrect, this could lead to further queries being raised and further delays in reaching a settlement.

This is even more important for individuals who are landlords and own several properties or assets that have joint ownership, as income may need to be allocated accordingly. Another common error is failure to take note of changes in tax or expenses that may be allowed.

Professional tax disclosure services in London are often sought by individuals who want confidence that their disclosure is compliant and accurate, especially when larger sums or several years are involved.

Regional Considerations for Taxpayers

Although HMRC regulations are universal in the UK, each situation is very unique. London taxpayers may have a complex scenario due to higher-value properties, mixed income, or ownership of investment portfolios.

Equally, landlords and business owners across other regions within the country also need careful handling regarding disclosure services. For instance, individuals requiring tax disclosure services in Manchester may have varying property or business structures but similar demands for clear and accurate disclosure submitted within due time.

It is, however, also a matter of providing a tailored disclosure that is not necessarily based on generic calculations.

The Benefits of Professional Support

Although HMRC allows taxpayers to submit disclosures themselves, professional support can significantly reduce risk. An adviser can review historical records, calculate liabilities correctly, and communicate with HMRC on your behalf.

This not only saves time but also ensures penalties are kept to a minimum where possible. More importantly, it provides reassurance that the matter has been resolved properly, allowing taxpayers to move forward with confidence.

How Wingate Accountants Can Help

Wingate Accountants assist individuals and landlords with HMRC tax disclosures and Let Property Campaign submissions. Their approach is careful, confidential, and focused on achieving a clear and fair outcome.

If you are concerned about undeclared income or need guidance on your options, contact us to discuss your situation.