It is a computer based tutorial aimed to make it easier for landlords to understand when and how to pay tax on their rental properties. We, The Association of Residential Letting Agents and the Residential Landlord Association will make the training available to members.
What is the purpose?
HMRC want to make sure that landlords have their tax affairs right from day one, whether it is because they have not declared before or have under-declared their earnings they will now be able to make sure that it is done correctly without confusion.
This is a great idea and it is nice to see that they have taken the approach to help people comply with the tax rules. HMRC are urging landlords to register and have contacted 40,000 to make them aware. There is always a risk that as a landlord you may get audited, which is exactly what HMRC are planning to do by targeting those who have not registered and investigate their affairs. The NLA offers tax investigation insurance which all members receive as standard when they join.
With 2,500 people renting out residential property already having voluntarily contacted HMRC, there is obviously a need for the service.
What is it?
The bite-sized modules will explain to landlords:
- when and how property letting starts, and what to do
- the various types of property income – furnished, unfurnished, holiday lets, Rent-a-Room, the Non Resident landlord Scheme – and how they are taxed
- the correct treatment of income and expenditure, both revenue and capital
- tips on record-keeping
- property disposal, Capital Gains and Inheritance Tax
- tax return filing and paying dates – and when and how
- PAYE and VAT obligations
To get the best terms, landlords must tell HMRC that they want to take part by filling in a notification form or calling the Let Property Campaign helpline on 03000 514 479. They then have three months to calculate and pay what they owe.
People who have undeclared tax can get help through an HMRC YouTube video: www.youtube.com/watch?v=hP6xMaiiYw4