LANDLORDS are being urged to declare income from their properties or face the risk of severe penalties.
Worcestershire accountants Ormerod Rutter have issued the warning as HMRC’s Let Property campaign approaches its first anniversary.
Private client manager Anthony Middleton, who is based at the firm’s Droitwich office, said that fewer than 500,000 taxpayers are registered with the tax authorities as owning a second property yet the real number could be as high as 1.4 million.
“This campaign was launched in September 2013 and although it’s open-ended, that doesn’t mean landlords should be complacent , they need to take action as soon as possible,” said Mr Middleton.
“HMRC are being very proactive, approaching letting agents for lists of landlords and cross-checking taxpayers’ records with Land Registry information, and if any tax is due the penalties can be severe. However, it’s also worth considering that if your property has made a loss, then that can be offset against future profits. Landlords who have not yet declared their income are welcome to contact us and there is also plenty of useful information on the HMRC website.”