Friday, Jun 20, 2008
IR hunting tax didging BTLers
myfinances.co.uk: Buy-to-let landlords face tax crack down
Buy-to-let landlords are set to face the attention of the taxman over undeclared rental income – even if they have now sold the property in question. According to wealth advisors Route Group, HM Customs and Revenue (HMRC) has launched a clampdown in recent weeks, forcing buy-to-let investors to consider their tax position.
Posted by quiet guy @ 07:44 AM (826 views) Add Comment
12 Comments
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1. quiet guy said...
Oops. I meant "tax dodging BTLers".
2. captain sensible said...
With stamp duty revenue falling through the floor, where else is the government going to get its tax pounds from? BTL investors who haven't declared income or capital gains better watch out - bonuses for the tax inspectors who bring the most in, I wonder?
3. Urine Trouble said...
Nice to see this sort of action being taken, those property porn shows very rarely mention tax implications.
4. confused76 said...
"Given current market uncertainties surrounding residential property, and the increased costs of mortgage finance, some smaller landlords are looking to call it a day on their buy-to-let investments and sell up," said Simon Pimblett, head of research and development at Route Group.
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5. it_is_going_with_a_bang said...
This is nothing new is it?
I personally don't think the tax offices will do any more than they ever have done.
They are hardly likely to be allowed to pursue a more aggressive approach and risk damaging the housing market any more than it already is.
Gordon and Darling will quietly be making sure of that - of that I have no doubt.
6. nubbers said...
This is hardly likely to affect the hoards or recent BTLers, as most of them must have made a loss (even if they have mistakenly deducted the repayment portion of the mortgage).
I would expect that this will hit more established cash rich landlords, who might not have been declaring all of their income.
7. george monsoon said...
Loads of "to let" signs going up all over my town.. none are posted as "let" at the moment. Oh dear...!!
8. drewster said...
Does anyone know the phone number for the Revenue's BTL tip-off line? (if there is such a thing?) I've been house-hunting recently and have encountered more than a few dodgy-smelling landlords!
9. Rental John said...
Tax Evasion Hotline
A confidential phone line for you to report somebody who is not paying their fair share of tax Opening hours 8.00 am to 8.00 pm Monday to Friday
8.00 am to 4.00 pm Saturday and Sunday
Closed bank holidays 0800 788 887
www.taxevasionhotline.co.uk
10. need-a-crash said...
I'd be surprised if any of the smaller BTL landlords are paying tax on their rental income, many probably pay PAYE on their day job and just assume their rent doesn't have to be taxed.
Even if they are vaguely aware that it should be, HMRC is in total chaos anyway and hardly likely to know of /or be chasing the tens of thousands of extra BTL landlords who have sprung up in the last few years!
Why chase unknown BTL landlords when you can just put up tax on cars, petrol, council tax....
11. confused76 said...
for your anonymous tips
http://www.taxevasionhotline.co.uk/
Report your favourite BTL online, by post, by phone
12. jonb said...
I've said it before, and I'll say it again.
When mortgage interest is higher than the rental income you receive, and you have other expenses as well, HMRC are unlikely to find a single penny in undeclared taxable income.
The business plan of most BTLers was that the property price would rise by more than the trading losses on their buy to let business, and they could MEW them as a source of "income". That worked for about 5 years, but it isn't working now, and is unlikely to work for some time now. There is no tax on MEWing, as it isn't income, it is proceeds from a loan which has to be paid back with interest.
The vast majority of calls to the tax evasion hotline do not lead to any tax evasion being discovered
http://www.accountancyage.com/accountancyage/news/2218953/hmrc-evasion-hotline-flooded