Residential landlords across the country are facing a new crackdown as HMRC targets underpayment.
Landlords are reportedly receiving letters from HMRC asking for further information about their rental income and other arrangements. Reports suggest that landlords in London, East Anglia, and South Wales are being particularly targeted.
The Revenue is asking for information on number of tenants, property addresses, and other details. They are also reportedly asking landlords how they acquired their property, and whether or not they have a mortgage.
Some landlords are also being asked to provide further information to support their rental income declarations from Self Assessment returns.
The moves are the latest in a series of HMRC clampdowns on landlords. In October last year accountants began to warn that the Revenue had begun more aggressively chasing landlords that it believed had underpaid their tax. In November they launched a campaign against underpaying so-called ‘accidental landlords’.
HMRC is giving landlords an “opportunity to bring their tax affairs up to date” and get “the best possible terms to pay the tax they owe.” The Let Property Scheme is aimed at residential landlords, and requires full disclosure of unpaid tax in return for preferential payment terms.
Underpaying landlords who fail to disclose under the Let Property Scheme could face prosecution. More information on the scheme is available on .GOV.
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