A prominent accountant is warning that the upcoming Renters Reform Bill, when it becomes law, will be used by HMRC to extract maximum tax from landlords.
Aatif Malik says one particular measure in the Bill - the creation of a digital private rental property portal - will “significantly reshape the landscape of tax on rental income, profoundly impacting resident and non-resident landlords and investors.”
The government anticipates launching the Property Portal in Autumn 2025, assuming the Royal Assent of the Renters (Reform) Bill is granted in early 2024.
Malik says the portal is designed to streamline the communication process between landlords, tenants, and local councils, creating a one-stop shop for all parties within the private rental sector.
Under the impending legislation, it will become mandatory for landlords to register themselves and their properties on the portal; failure to comply with regulations may result in significant financial penalties.
And he warns that: “Repeated breaches or serious offences may prompt an investigation by the Fraud Investigation Service, a specialised division within HMRC that deals with cases where the loss to the exchequer exceeds £100,000.”
Malik describes the Bill as “a clarion call for landlords to ensure their financial and tax affairs are fully compliant. Waiting for a nudge letter from HMRC under the Property Let Campaign or Undisclosed Income could lead to penalties, affecting cash flow in an already economically precarious environment."
The Renters (Reform) Bill also outlines the continuation of selective licensing, with potential new areas for licensing to be identified via the portal. Malik warns that failure to abide by licensing requirements can also add to the risk for landlords, especially if they have yet to declare their income from property.
"Preparation is the best defence. The current climate's economic challenges mean landlords must understand and fully meet their obligations under the new reforms" he concludes.
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For us landlords who are paying their full taxes and being hammered already the renters reform bill has other more pressing agenda.
I have absolutely no sympathy for anyone who is not declaring their rental income.
People who earn money from property should be paying tax like everyone else. This type of article only serves to demonise landlords further. Most landlords pay their taxes. Like everything in life you always get the few that don’t. And like everything in life if they get caught doing something else and it leads to a tax investigation they’ve only got themselves to blame. If you’re a landlord you have to do everything by the book. Compliance in everything it’s the only road to peace of mind! Lecture over.
Yes well us tenants are sick of being screwed over.
As said above, for those of us “ doing the right thing “, this is not a problem, but those avoiding tax will simply not register 🤔 I just bet there are vast hordes of personnel out there ready to catch them 😂😂 like none 😱😱
If the Government want to have a Portal how about Private Landlords having direct access to Universal credit .
Will NRLA now campaign for the end of selective licensing given that a portal will identify landlords and property so councils will be able to check compliance and enforce regulations ? Don’t hold your breath.
I predict there will be three types of landlord
1- the informed and compliant
2- the ones who don’t keep up their knowledge and won’t join until found out (how I don’t know?)
3- an increasing number of crooks and rogues who will consciously avoid the scheme and operate in the grey economy. The Bill needs to say how they will be discovered.
Beadles About will not do too much unless it involves his student lets
And unfortunately, tenants are complicit because they will rent from the rogues as it is cheaper than renting from a compliant LL.
Why are you all banging on about about Dodgy Landlords. Most Landlords I meet are hard working small landlords now trying to make ends meet . The Renters Reform Bill will not Help small Landlords or Tenants.
What is will do is cause a shortage of Rental Property and increase rents .
Spot on! Long term tactics are to allow Corporates plus Council’s to buy the land and properties at lower prices.
Properties for sale market is currently flooded with small landlords, HMO owners looking to offload them = opportunities for Council’s & corporates.
Best wishes to all good, honest, hardworking small landlords.
Without ''dodgy landlords'' where would dodgy tenants rent from? they deserve each other, horses for courses as the saying goes
Shame there are property developers who aren't fussy about the rouges..Turn a profit that's all that counts.
Come on Sandra, you can do better than this cheap line of argument! Have you ever tried being a property developer or built a house? What's so evil about them making a profit? Our economy would collapse without profits to invest back in the business, to grow and employ more people, to reward people for risking an investment, or for the Government to tax. Your own employer probably has to make a profit or "surplus" to survive. If a little old lady sells her house of 50 years to a "rogue" and makes a gigantic fortune of untaxed capital gains in the process, is that evil profit and are you equally as judgemental about her?
Profit is such an ugly word to those that can't make one, bitter and twisted people I've known a few
I have been investigated 3 times over the last 8 years and the only anomaly found in the three investigations was 200 quid for an excessive phone bill?!?! I think it is because I am abroad and not subject to UK tax makes them look at me a little more often.
I pay exactly what is due but the main reason I left the UK was the utter waste of my families contribution into the system. Would love a sit down with Gove, Beadles About and Generation Acorn to explain some of the tough times I went through providing properties for people that needed them. Did not have to do it but I embraced it, got on with it and worked my backside off to build a portfolio.
As for the portal this will be fun, digitizing tax was supposed to out three years ago no it appears 2025 at the earliest... Utter incompetence
You make an interesting point about time frames: ban gas boilers by 2016, still being installed today; EPC Cs by 2025 - pretty unlikely now; RRB by the Autumn - really? MTD - keeps getting kicked down the road. This Govt can deliver anything on time!
Correct Tricia, all of them about as reliable as cramp..!
if the revenue want to catch none tax paying landlords they should simply cross reference data from land registry and local authority council tax records.
1. who owns the house?
2. who pays the council tax?
if they dont match theres a good chance theyve hit a bullseye
The gov't personnel and so called charities (for doing nothing practical, except dictating by brainstorming sitting in an office over a meeting with sandwiches and coffee) know how to open their big mouths but not be able to deliver anything. All BIG talk and no production. They have investigated once only when I was working as a self employed consultant. So investigated the rented properties as well. Properties, I volunteered to Inland Revenue, at the time of first purchase, to say I had a bought a property. I had no extra tax to pay. What they found was, that I was not putting all my expenses against the tax (this was due to me very busy). This was before EPC or any other requirements. Yes, I knew of people not declaring their properties and not completing the tax returns at all. I am no whistle blower. Actually, HMRC has always been helpful, when I have had any questions for them. However, it is so frustrating that they have no digital tool inventions for the likes of Amazon and such large companies, who get away with paying fraction of their share of tax. Here, now some LL are bashing other LL's. Why? Because they do not have any power to big companies, just this portal to bash other LLs, who have got away with pittance, while large companies get away without paying millions of £ of tax. So insensical!!
Sandwiches and coffee?
More likely to be steak and claret or caviar and champagne for most wealthy charity bosses!
NRLA membership is not worthwhile as they support abolition of S21, except for student lettings. Has Beale got student properties? So have I among others.
Yes he has I believe - there is a big thread on this on propery tribes website re do nrla support landlords
Alan, even if they knew how to find rogue landlords who do not pay tax, they certainly will not publicise but sooner or later pounce at those.
I've been told that every tax inspection costs HMRC thousands most of us have insurance now to cover accountancy and legal fees to defend ourselves
Biggest problem here is if you have an address, an NI number, be upright and p*ss in straight line you are a target 🎯
This highlights the reason it's called the Renter's Reform Bill and not the Landlords and Tenants Reform Bill.
It also explains why the Gov want a Landlords Register but unfairly don't mention a Tenant's Register. I'm worried sick that this will be the final straw for my excellent landlord of 11 years. I don't have any savings and there isn't a single rental property in my area I can afford. This Bill has always had a hidden agenda- HMRC !!
The people with one property they rent to family or a friend will never register or pay tax. They have a "it's just one property and no one knows I rent it and they pay me cash" set up.
The rest of us are already getting hammered so no biggy.
Tax dodging Landlords are just small fry compared to the biggest sectors of tax avoiders & evaders: Global corporations especially big Tech. Politicians, including the current incumbent im No. 10 and his wife, second job MPs, previous Prime ministers and their families operating through grand Cayman and Panama.
Then there's the vast cash-in-hand economy. (Mini cabs, cash only plumbers and odd job cowboys), nomadic investors.
Of course HMRC home in on Landlords for a regular purge.
They are low hanging fruit because they are constantly seen through Dickensian eyes as the most evil of all money makers by everyone in society.
"How dare these leeches make money out of people seeking shelter?"
"Force them to hand their properties over to the homeless"
"Have them publicly flogged every Christmas"
„Proletariat der Welt, vereinigt euch“
„Von jedem nach seinen Fähigkeiten; jedem nach seinen Bedürfnissen“
(Karl Marx)
„Bald wirst du nichts mehr besitzen und wir werden dich besitzen“
(Karl Schwab)
"כדי ליצור עתיד פיננסי טוב יותר לכולם. אחד בשבילך, שלוש בשבילי"
(BlackRock mission statement
Of course the Landlords Register will not be matched by a Tenants Register, with their addresses, NI number, CCJ records etc on record. Rogue tenants get away with things time and again, debt recovery from guilty CCJs is almost impossible, deposits are utterly inadequate compared with the damage they do, and now the RRB is virtually designed to destroy small landlords. HMOs are going to become like AirBnBs or hotels, because a tenant can sign a tenancy, then give two months notice the next day, and bring in an evil-smelling totally untrained "pet" at will too. I am totally unsurprised that small landlords are forcing up rents, kicking out their worst tenants, and selling up. Under the RRB life is going to become simply impossible and far, far too risky unless you have deep pockets and a large portfolio.
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