HMRC is now comparing tax returns with information obtained from the Tenancy Deposit Scheme. Part of the letter states:
Our information shows that you have put a deposit in a ‘Tenancy Deposit Scheme’. We have compared this information with what you have told us on your Self Assessment (SA) tax return for the year ending 5 April 2021. Our comparison suggests you may not have told us about all of your rental income. If you have sold or disposed of a rental property recently, you may also have to pay Capital Gains Tax on any profit made on that sale or disposal.
HMRC will usually charge interest and penalties on tax due on undeclared rental income – these will be much less if you make a voluntary disclosure rather than a ‘prompted’ disclosure.
Disclosures can usually be made online. Please contact us if you require help with any rental income disclosure.
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