PROPERTY: HMRC target undeclared rental income
HMRC continue to run their campaign targeting landlords who are not declaring rental profits in their tax returns.
The campaign began in 2013 and is suspected to be on of the largest and longest onshore campaigns in the UK to date.
Although it has only been running for eighteen months, with the help of “big data” the campaign is in full swing and is expected to last a number more years.
Why the focus?
HMRC predict as many as 1.5 million landlords in the UK. However, their records show as few as 500,000, officially “on file”.
Needless to say their motives for this campaign are worthy with an estimated one million, that’s two thirds of landlords missing!
How HMRC get the information?
It’s not quite as high profile as MI5 but HMRC has exceptional information powers to obtain data from everywhere, to name a few:
- Land Registry – showing who owns the property
- Councils – showing claims for reductions and benefits
- Third parties, such as letting agencies or companies providing a similar service when landlords find tenants.
What action is in force?
HMRC are in contact already with approximately 50,000 suspected landlords who they calculate should be declaring rental income. After these have been processed and conclusions drawn, the campaign will continue to search and deal with the other 950,000 (ish).
Many doctors and dentists own rental properties. Figurit help minimise tax on rental profits through robust tax planning, like claiming the maximum expenses against rental income. Call today to discuss your rental property situation.
020 7376 9333
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