Tuesday, October 29, 2013
Only 50% of Landlords registerd with HMRC.
Fewer than 500,000 taxpayers are registered with HMRC as owning properties other than their home. And yet other sources put the number of BritainÃ¢Â€Â™s growing army of landlords at between 1.2million and 1.4million. Why the discrepancy? No one can say for sure, but the taxman has his answer: not enough people are declaring Ã¢Â€Â“ and paying tax on their property incomes and gains. HMRC has a lot of weaponry at its disposal. It can cross-check taxpayersÃ¢Â€Â™ records with Land Registry data and, if it wishes to, can go on to request data from third parties such as lettings agents. Banks are another source of information, as taxman can ask for information about mortgages advanced to landlords Tenancy deposit protection was designed to protect tenants but it added a useful string to HMRCÃ¢Â€Â™s bow.