Landlords have been told they could be left waiting for six months before HMRC respond to their attempts to correct past property tax mistakes.
HMRC’s Let Property Campaign urged landlords to disclose earnings from renting out properties or rooms, which they may previously have failed to pay the necessary property tax on.
With many people becoming ‘reluctant landlords’ during the recession, either letting out a spare room to boost their income, or forced to rent out an entire property due to negative equity, it’s a big issue.
And the scale of the response has overwhelmed HMRC, according to the Residential Landlords’ Association.
“In fact, the response has been so overwhelming, landlords could face a six-month wait for disclosure forms to be accepted,” the RLA says.
With that in mind, it might seem tempting to put off reporting any past rental income until the demand eases, but it is still important to at least submit a disclosure, even if there is a lengthy delay before it is processed.
All in all, the campaign is likely to run for four years, and the RLA adds: “Landlords should ensure their tax affairs are in order.
“The RLA strongly urge all landlords to check their claims, use the tools at their disposal and demonstrate the compliance of landlords in the private rented sector.”