Case Study: Resolving Undeclared Rental Income Through the HMRC Let Property Campaign
Background & Challenges
A new client approached Howlader & Co after discovering that rental income had been inadvertently omitted from their previous self-assessment tax return. When rental income is not declared, HMRC typically issues estimated assessments that include significant penalties and interest charges – often exceeding the actual tax due.
They required swift, expert intervention to correct the omission and minimise the financial and legal repercussions.
Howlader & Co’s Solution
Our team acted immediately to protect the client’s position.
We promptly registered the client for self-assessment with HMRC to prevent automatic penalties for non-compliance.
We prepared and submitted a detailed disclosure through the Let Property Campaign, HMRC’s dedicated scheme for individuals who have not fully declared rental income.
We also:
- Conducted a full review of historical rental income and allowable expenses
- Ensured complete accuracy and compliance for the disclosure
- Calculated the outstanding tax liability
- Proposed a 10% penalty, which is significantly lower than the penalties HMRC imposes when they identify undeclared income themselves
This proactive and transparent approach placed the client in the best possible position when HMRC reviewed the case.
Results & Impact
HMRC accepted our proposal and calculations in full.
By utilising the Let Property Campaign, we:
- Substantially reduced the client’s exposure to penalties and interest
- Prevented HMRC from issuing much higher assessments
- Ensured the client’s tax affairs were fully regularised
- Provided complete peace of mind through a clear, guided process
- Avoided the risk of further investigation or enforcement action
Although the process can be lengthy, the final outcome was highly favourable for the client – both financially and in terms of compliance.
Client Feedback
Once the case was closed, our client was extremely pleased with our services and sincerely thanked us for making the process smooth and easy to follow.
They also expressed their gratitude for saving them from a significant tax burden that could have arisen from the potential penalties that HMRC could have imposed.
Contact Howlader & Co today to see how we can help you!