HMRC investigations have risen by 60%. Wow! The leniency shown during the pandemic is long gone. Landlords with rental properties in the UK and overseas are being targeted, alongside individuals with offshore interests, second homes, stocks and RSUs (Restricted Stock Units).
“We’ve seen a massive increase in requests for information on undisclosed rental properties and offshore income,” says Emily Bridges of re:accounts in Stevenage. “Rental income is not the only property-based interest of HMRC. Capital gains tax due on the sale of second homes or rental properties is also being investigated.”
Disclosure schemes are available to individuals with undeclared income from properties (Let Property Campaign) and offshore interests (Offshore Disclosure Facility). Once information is disclosed, you have 90 days to work out and pay what you owe.
Where additional taxes are due, HMRC will usually charge higher penalties when information is discovered (via an investigation) rather than disclosed. The penalties could be up to 100% of the unpaid liabilities, or up to 200% for offshore related income.
The law allows HMRC to go back up to 20 years and in serious cases, HMRC may carry out a criminal investigation.
This is not a trick question …
Do you have undisclosed income?
If so, it is far better to declare it rather than wait for an investigation by HMRC. If you have undisclosed income, the re:accounts team can help you. We minimise the amount of tax and any penalties payable and help you avoid the stress and expense of an investigation.
“The penalties will be much lower if you disclose undeclared income before HMRC approach you,” explains Emily. “I strongly recommend that you use the disclosure schemes available and have professional support to understand what income needs to be declared and the level of payment needed, involving both tax and penalties.
“Tax investigations can be scary and very expensive. If you have undisclosed income, talk to the re:accounts team about your situation.
“We are very experienced in liaising with HMRC. Our superpower is minimising the tax our clients pay. This applies to undisclosed income as well as regular tax returns. We specialise in international tax and helping clients with offshore interests and properties.
“The best way forward is to step up and declare any undisclosed income rather than dread the arrival of a brown HMRC envelope. It’ll save you money, time and lots of stress.”
Are you keen to avoid a HMRC investigation?
Talk to the friendly experts at re:accounts. HMRC does not let up in its pursuit of recovering unpaid tax. We can help resolve your undisclosed income safely.
