Landlords - Disclosure notice to HMRC

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Hello. 

I've had a new client come to me and say that they want to come clean about a couple of houses that they own and have been recieving an income from them for a number of years without declaring the income.

I was wondering if anyone had carried out a disclosure for their clients and how HMRC were regarding penalties. 

Replies (5)

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By Wanderer
08th Feb 2017 22:01

https://www.gov.uk/let-property-campaign

make the disclosure under that.

Effectively fixed penalties & once you've done it a couple of times a relatively quick & easy process.

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Jennifer Adams
By Jennifer Adams
09th Feb 2017 08:51

I agree with wanderer. This is one dept of HMRC that runs efficiently and is unjudgemental. You just complete the form, work out the interest and tick the penalty box.
You wont get away with 10% penalty so dont bother ticking that box. Its now always 20%.

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Replying to Jennifer Adams:
By JCresswellTax
09th Feb 2017 09:04

JAADAMS wrote:

I agree with wanderer. This is one dept of HMRC that runs efficiently and is unjudgemental. You just complete the form, work out the interest and tick the penalty box.
You wont get away with 10% penalty so dont bother ticking that box. Its now always 20%.

Hi Jennifer,

Why do you not think 10% penalties would be ok?

I have done this for a few clients and they were accepted. As I understand it, it is 10% for unprompted disclosure and 20% for prompted?

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Replying to JCresswellTax:
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By Wanderer
09th Feb 2017 09:21

I've only had 20% for prompted.

Unprompted generally 10%.

One unprompted I offered 0%, HMRC disagreed but finally accepted my arguments & agreed no penalties.

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By SteveHa
09th Feb 2017 09:32

As I've mentioned on these forums before, the last LPC disclosure I did (around August 2016) HMRC charged £0 penalties. Unless they've changed their attitude since then, there's no guarantee of a penalty.

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