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TODAY'S OTHER NEWS

Significant increase in the number of landlords admitting to not paying tax

The number of buy-to-let landlords confessing to not paying tax has soared, new figures show.

A crackdown by HM Revenue and Customs prompted a 145% jump in the number of landlords declaring unpaid tax - from 6,600 in 2017/18 to 16,110 in 2018/19.

Additional taxes collected by HMRC from buy-to-let landlords who admitted to unpaid tax on their rental income have more than doubled over the corresponding period, from £21m to £42m.

HMRC has been behind an initiative, the Let Property Campaign, which provides an opportunity for landlords who owe tax through letting out residential property, in the UK or abroad, to get up to date with their tax affairs in a simple way and take advantage of the best possible terms.

If you have undisclosed income, you must tell HMRC about any unpaid tax now. You will then have 90 days to work out and pay what you owe.

Mark Giddens, a partner at accountancy firm UHY Hacker Young, commented: “HMRC sees the buy-to-let market as a source of hundreds of millions of pounds of unpaid tax.

“The amount collected just from landlords coming in from the cold suggests they may not be too far wrong with that estimate.”

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    I wonder why HMRC does not contact letting agents to obtain details of all their client landlords ........ They should have the right to do so. (Of course not all landlords use letting agents.)

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    Rogue ones certainly don't and prefer to 'stay off the radar' so to speak.

     
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    Maybe if they stopped the absolute bonkers s24 and all the other ludicrous taxation polices this may not happen as quite simply s24 is unaffordable for most mortgaged landlords

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    We should all pay our due. But of course any UK government picks off the small person first. Meanwhile Amazon kills the High St and is offshore and tax avoiding in Juncker's Luxembourg. So as ever the big people with good accountants and lawyers laugh at the rest of us !

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    None of us like paying tax but not to pay is plane wrong, personally i put as much as possible against profits then pay the tax on time and in full, that way i can hold my head up high and i'm not constantly looking over my shoulder.

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    I do the same Andrew.

     
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    Paying tax is one thing, but doing away with Section 21 is something else, will we be in business at all ?. Also when Section 21 is gone, surely that means Assured Short Hold Tenancies are gone as well / the very basis-of any letting at all to 245 million house holds, think on.

  • Paul Barrett

    How about this.
    Allow any LL selling to a tenant to not pay any CGT.
    Then how about Councils offering IO mortgages based on HB income.
    Give such tenant purchasers HTB deposits repayable to age 90 with no interest charged.
    Then when the tenant purchaser needs a care home the Council can then sell the property to itself to pay for care home fees
    So a full circle with eventually the Council suffering no losses.
    I'm sure many LL would love to sell up to tenants with no CGT!

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    Far too sensible Paul.

     
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    Sorry typo that was meant to be 4.5 million house holds, those bloody phone’s

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