HMRC sends urgent '30-day' deadline letters to Brits

Britons are being put on notice by HMRC for failing to declare income from their properties, and they could be hit with penalties if they don't come clean. The tax authority's letter urges recipients to disclose information on rental earnings or proceeds from selling a second property.

Those contacted have 30 days to reply, while HMRC stresses that penalties will apply to those who ignore the issue. If there's undeclared income, taxpayers must reach out to HMRC within 30 days of the letter's date, upon which they'll receive a payment reference number (PRN) and then have a further 90 days to declare income and settle any tax due.

Even those believing they owe nothing should contact HMRC via the provided details within 30-day window. Ignoring this letter could trigger a compliance check and result in enhanced penalties and potential interest charges on late tax payments.

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The template letter starkly notes: "We have information that shows you’ve received income from property lettings You may have to pay tax on your income from property if you:

* let out property

* are a landlord

* have been a landlord.

“If you haven’t told us about this income, you may owe tax.”

Landlords are being reminded that failing to disclose rental income could result in hefty tax bills. A stern HM Revenue and Customs warning conveys: "If you haven’t told us about this income, you may owe tax."

Additionally, for those who've disposed of properties previously used for rental purposes, the reminder adds, "If you’ve disposed of property that you received rental income from in the past, you need to make sure you’ve declared it to us. You may have to pay Capital Gains Tax."

Further, the letter comes with an admonition stating: "If you don’t declare any income or contact us, we’ll open a compliance check and can charge you extra penalties."

Those who have not promptly informed HMRC about their tax situation will find that "If you didn’t tell us you may owe tax, or didn’t tell us on time, we’ll treat any disclosure you make from now on relating to the issue above as prompted."

This action will influence potential penalties and interest accrual because, as the HMRC indicates, "This may affect any penalties you have to pay. We also charge interest daily on late tax payments. Paying any tax you owe sooner will reduce the amount of interest you’ll have to pay."

To assist with the process and to comprehend both the rights of individuals and potential penalties, HMRC has provided a series of factsheets, which are accessible on the GOV. UK website under ‘Compliance factsheets’. To view these documents, you can follow this link. If needed, a phone call can be made to 0300 123 0998 for further guidance.