Landlord Tax Investigation Cover

By RentSafeUK
In Services
May 28th, 2014

Since 2012 HMRC has had a special Task Force, that is part of their wider initiative to clamp down on tax evasion, avoidance and fraud among landlords and they aim to raise £7 billion a year in unpaid taxes. Even where their investigations clear you of any wrong doing, you will be left to pay the cost of providing this information to them, including charges that your Accountant might make.

Under paragraph 18 of Schedule 23 of the Finance Act 2011, Letting Agents are required to make an annual submission to HMRC giving them full detail of all the gross rents that they have collected and the details of the landlords to whom this has been paid. Failure to comply will attract an initial fine of £300 and £60 a day for every day that the submission is not made. HMRC wrote to thousands of Letting Agents in February 2014 reminding them of this obligation, many of them are now having to charge their landlords for this extra workload.