HMRC launched the Let Property Campaign in September 2013 to encourage residential landlords to come forward and voluntarily disclose undeclared rental income. At that time HMRC estimated that up to 1.5m landlords were underpaying up to £500m in tax every year.
A year later HMRC provided an update.
By 30 October 2014 HMRC had collected income from the campaign totalling £7.8m and, by 31 January 2015, the total had increased to over £20m from disclosures made by around 9,500 landlords.
According to figures obtained by Abbey Tax from HMRC under a Freedom of Information request, HMRC has now received over 13,000 disclosures since the start of the campaign and the end of June 2016. That figure equates to roughly 351 disclosures to HMRC every month from underpaying landlords.
In monetary terms, HMRC states the total revenue impact of the Let Property Campaign, again at the end of June 2016, stands at £92m. The word impact is important because that is likely to mean the £92m figure is a combination of actual money collected and projected future tax losses prevented, as a consequence of the disclosures being made.
When asked to provide an indication of the lowest and highest disclosure settlement figures, HMRC declined to provide any further information as publication of the figures would be attributable to an identifiable taxpayer.
When asked how many more disclosures were expected, HMRC simply confirmed the Let Property Campaign is an open-ended campaign and the new Digital Disclosure Service is available to make a disclosure of any nature from now on.
Further information on HMRC’s Let Property Campaign is available here.
Author: Guy Smith, Tax Investigations Manager