The world is changing for landlords and their rental businesses and many are finding the onerous responsibilities and restricted tax reliefs are putting a strain on profits. That is for those that are correctly declaring their rental profits to HMRC.
For those that aren’t, there is a very real risk that HMRC will discover the rental income.
It can be confusing for landlords as many believe they do not make a profit because any income is cancelled out by mortgage payments. However, if it is a repayment mortgage then only part of the repayment is tax deductible.
If HMRC discover rental income that has not been declared then the penalties can be substantial.
All is not lost, HMRC are currently running a let property campaign whereby the penalties can be greatly reduced.
If you would like to bring your tax affairs up to date and banish the fear of HMRC knocking on your door, then please get in touch and we can guide you through the process.
