A new scheme aimed at landlords who may owe tax due to misunderstanding the rules or deliberate evasion was launched last Autumn. Unusually, the campaign does not currently have a finish date and will run until at least March 2015. HMRC will allow landlords to come forward voluntarily throughout the entire time period that the disclosure opportunity remains open.
HMRC has confirmed that taxpayers that do come forward voluntarily as part of the initiative will receive better terms and lower penalties than if approached first by HMRC. From this year, any landlords that have not declared all their rental income may be contacted by HMRC. The landlords will then lose the opportunity to make a disclosure as part of the campaign. Landlords who are targeted by HMRC can face penalties of up to 100% of the tax due together with possible criminal prosecution.
The campaign is open to all residential property landlords. According to HMRC, this includes those that have multiple properties and single rentals as well as specialist landlords such as student or workforce rentals and holiday lets. HMRC estimates that up to 1.5 million landlords may be underpaying up to £500 million in tax every year.
Monday 12 May 2014
Thursday 1 May 2014
Renewing tax credit claims
Families and individuals that receive tax credits must renew their tax credit claims by 31 July 2014.
HMRC has begun sending tax credits renewal packs to about 5.8 million households. The packs are being sent out between April and June. Taxpayers are being urged to renew as soon as possible in order to avoid a last minute rush. Claimants who do not renew on-time may have their payments stopped.
Claims should be renewed by completing the renewals pack. Claimants need to notify HMRC where there have been changes to the family size, child care costs, number of hours worked and salary. Details of previous year's income also need to be completed on the form to allow HMRC to check if the correct tax credits have been paid.
Any further changes which take place during the year should be notified to HMRC immediately, such as significant changes in salary or the birth of a new child. Any changes in income of more than £5,000 must be notified to HMRC without delay.
It is advised that People should check their details and renew early to make sure they get the right money. People who don't renew on time risk losing their payments.
HMRC has begun sending tax credits renewal packs to about 5.8 million households. The packs are being sent out between April and June. Taxpayers are being urged to renew as soon as possible in order to avoid a last minute rush. Claimants who do not renew on-time may have their payments stopped.
Claims should be renewed by completing the renewals pack. Claimants need to notify HMRC where there have been changes to the family size, child care costs, number of hours worked and salary. Details of previous year's income also need to be completed on the form to allow HMRC to check if the correct tax credits have been paid.
Any further changes which take place during the year should be notified to HMRC immediately, such as significant changes in salary or the birth of a new child. Any changes in income of more than £5,000 must be notified to HMRC without delay.
It is advised that People should check their details and renew early to make sure they get the right money. People who don't renew on time risk losing their payments.
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