Let property campaign is not a new strategy at this point, but still, some landlords might be unaware of the benefits and the legal process the campaign is officially presenting. Let Property Campaign was offered in 2013 and since then and has passed through many variations in the terms and conditions. There have been specific issues for the landlords as well as the process of disclosure is not easy and a smooth journey for all of the clients. In the following article, we will try our best to present the problems and the evolutionary process that Let Property Campaign has passed.
Let property campaign is a legal process of clearing your undeclared dues regarding tax liabilities. It applies explicitly to landlords having rental properties regarding income or rental income tax. Apart from that many other tax liabilities can be cleared at this moment. The top on the list comes from the capital gains tax and the other associated tax regarding rental properties.
Several factors have been changed in the Let Property Campaign, and it is essential to figure out to ensure the complete declaration of your tax liabilities in a précised way. The changed or updated factors are stated as follows.
Online Form Submission Issues
In the past years, almost everything shifted online due to technological advancement and the convenience it has given. The disclosure of the unpaid tax liabilities and the specifications are also updated with time. Previously, people used to fulfill their disclosure forms by printing out the documents and specifying the type of tax liability. It was somehow more convenient to specify than submitting the online forms. The online formats are the same for everyone and are very simple. The difference between income tax and capital gains tax has been omitted regarding online disclosures.
These forms can specify your desired disclosure if the disclosure is straightforward. But moving towards the complex issues, simple online form disclosure is not something you would be looking forward to. Therefore, if the issue is complex and cannot be straightly inserted into the given online formats, then consult a tax advisor and get the nearest possible solution to aid your disclosure journey.
The penalty rates have been a hot issue of discussion, as apparent from paying taxes, and no one wants to give away their money in the name of the penalty. Penalties are charged when the client cannot pay the taxes in the given set of time and does not want to submit the liabilities due to personal or professional reasons. The dishonest proceeding with unsatisfied disclosure leads to applying penalty charges and the unpaid tax amount.
HMRC follows the previous record of the client based on the disclosure process. If HMRC follows the legal process for up to three years and the client proceeds with the same attitude, the officials have assigned a ten percent increment on the penalty. The last penalty ranges from almost zero to thirty-five percent, but if the HMRC has a record of three consecutive years with no tax record, then the range changes from the previously assigned penalty charges. The new charges are between zero to forty-five percent of the unpaid taxes. Just imagine what a person will be left behind if he is entitled to pay that percentage of money.
So, the best way is to submit the dues on time. There is no shortcut regarding money saving and tax liabilities. The easiest way to save yourself from chaos is to submit liabilities on time. HMRC is very cooperative, and of course, this campaign is set up to let people help when they have been going without any driver on their bus, but the cooperation done by HMRC has some limits. If HMRC finds out that you have not been taxed just because you don’t want to pay tax, then a penalty after the disclosure will be your fate. But if the liabilities are not submitted on time, then relaxation is provided to the clients, and HMRC tries to facilitate them in each possible way.
“HMRC is very cooperative, and of course, this campaign is set up to let people help when they have been going without any driver on their bus, but the cooperation done by HMRC has some limits.
While submitting your dues via Let Property Campaign, the landlord might face multiple rejections based on common queries shared by everyone. The combined issue of income tax and the capital gains tax might be the top reason among the series. If the capital gains and rental income tax are added for the same year, then HMRC will ask you to add the two tax liabilities in the combined form. In the other case, if both tax liabilities are added separately, the online disclosure might face rejection, and a letter might be sent to the landlord.
But it does not mean that the capital gains and rental income tax are treated the same way. The HMRC officials might demand to separate the figure before the final disclosure proceeds. So, while filing the online forms, the protocol should be kept in mind to save your disclosure application from rejection.
All the issues described earlier do not mean the Let Property Campaign is something disturbing concerning the client’s approval for the related disclosures. The Let Property Campaign is full of benefits for those unable to pay the tax due to error or mismanagement. The rental services and the income liabilities go hand in hand as the government of the United Kingdom encourages the rental apartment service for tourists and non-residents. So it is a 24/7 business making a lot of money. And when a lot of money is being made, it becomes essential to fulfill your tax liabilities on time. However, if the process does not go smoothly for some reason, the clients are encouraged to open up their previous records and tell HMRC about the valid reasons and the corresponding tax liabilities so that the money can be submitted and the accounts can be cleared.
LPC And Reduced Tax
One frequently asked the question about the Let Property Campaign is about the reduced tax. Let Property campaign is not a legalized way to reduce tax when the landlord has been skipping the tax liabilities for a long time. The organization’s main objective is to provide an easy way to landlords who have not been on the right path. The campaign does help the landlords to disclose and give them some time to submit the dues, but it does not reduce tax. On the other hand, landlords are forced to pay the penalty charges in addition to their tax application. So after leaving so many tax liabilities, the landlords are not encouraged to look forward to ways that might reduce the tax through this scheme.
The services of Legend Financial are always there to save you from ambiguity and let you be on a smooth journey regarding disclosures. Our top priority is educating the client rather than serving them through a well-organized team of experts and professionals. Our professional tax advisors can also help you to fill the online forms that do not face any rejection. So the time and energy of the landlords get minimized. Therefore, choose your tax advisor wisely, as all the legal procedures and the proceedings need to be handled in such a way that forms are not rejected, and disclosures are made smoothly.