LET PROPERRTY CAMPAIGN
If you are UK resident and have undisclosed income, then HMRC has introduced the scheme Let property Campaign to help landlords to declare any owed tax through letting out residential and not commercial properties in the UK or overseas to get up to date with their tax affairs before being caught by HMRC. The scheme is always open.
You can always disclose any unpaid taxes outside the scheme if you want to, but the terms offered will not be the same as if the disclosure was made though the let property campaign scheme. By making a voluntary disclosure of all unpaid liabilities in these circumstances, you can expect a lower penalty charge from HMRC.
To apply for the scheme, you will need to tell HMRC that you want to take part in the scheme, make a formal offer and pay what you owe. When using the scheme, you will choose what penalty you should pay, if you have previously filled a tax returns and did not disclose your unpaid taxes because of careless mistake, then you only need to declare the last 6 years of unpaid taxes. However, if you were caught by HMRC before then the law allows HMRC to go back as much as 20 years.
Once all taxes have been agreed and you can not pay all of it at once, you can seek to spread out the payment.
Once you have notified HMRC and applied to the scheme through the online, you will receive unique disclosure reference ( DRN ) from HMRC and 90 days to complete your taxes, which then you will need to work out the tax due, Interest and penalty and send to HMRC, if the calculation is not done correctly your application will be rejected. The scheme can be used for any other income that was not taxed at source or disclosed before, not only residential property income, but others such as Capital gains, VAT, Trust income, Inheritance tax, Interest and any other income need to be taxed. It is always advisable to seek help from an accountant.
The link for notifying HMRC.