under-declared rental income
May 9th, 2014
While every attempt will be made to ensure that information provided is accurate at the time of publication, it should be treated as guidance only and does not constitute legal or professional advice. Tax law and guidance changes frequently and readers are advised to consult the current relevant product for the most up-to-date information on this topic.
In April the Risk and Intelligence Service within HMRC informed letting agents that a statutory notice is going to be issued for details of rents collected on behalf of landlords for the tax year ended 5 April 2013.
Once the statutory notices are issued, letting agents will have 60 days from the date of the notice to return the information to HMRC. Failure to comply with a statutory notice will attract an initial penalty of £300 and up to £60 a day for a continuing failure.
TolleyGuidance has prepared a complimentary guidance note on this new development and what you need to do if you have clients who act as letting agents or who are landlords themselves and may come to you for advice on disclosing under-declared rental income.