Business Works
  • About
    • About Us
    • The Team
  • Services
    • Business Growth
    • Access to Finance
    • Company Year End
    • Tax Protection
    • Payroll and Auto Enrolment
    • Other Accounting Services
  • Cloud Accounting
  • Jobs
  • Blog
  • Training & Events
  • Case Studies
  • Contact

TAX AVOIDANCE BY LANDLORDS INCREASES

  • Facebook
  • Twitter
  • LinkedIn
  • Google+

There was a 51% rise in residential landlords being pursued by HMRC for underpaid or undeclared tax on letting income in 2018.

8,704 property landlords were investigated last year under HMRC’s Let Property Campaign which began in 2013.  A scheme where an individual landlord letting out residential property, here or abroad, voluntary informs HMRC of any undisclosed income from said property.  In return they receive the best possible terms to pay the tax owed!  The scheme was to run for a minimum of 18 months but is now running until further notice.

In 2018 HMRC saw a 67% increase in the amount of income tax clawed back from landlords, equivalent to £32.8m.  The value of the fines being £5.6m.

Property landlords who underpay tax on their letting income can be fined up to 100% of the value of the unpaid tax plus criminal charges can also be brought.  Those property landlords who disclose genuine errors are dealt with less severely with HMRC going back just 6 years and smaller fines if any.  If you voluntarily inform HMRC of undisclosed letting income you have 90 days to pay the correct amount plus any interest or penalties.

Chris Norris, of the National Landlords Association said “Tax can be a complicated and confusing process for landlords who are trying to cut costs by doing their returns themselves, rather than seeking specialist advice. It is possible some landlords have unwittingly disclosed less tax on letting income than they should have.” John Stewart, of the Residential Landlords Association, said: “The tax system is becoming ever more complex in the private rented sector, and communication from HMRC on changes to mortgage interest relief has not been sufficient.”

If you require any assistance on this matter, then please call us on 0113 286 4486.

Source: The Daily Telegraph (09/02/19)/TaxAssist Accountants

Our Services

  • Business Growth

    If you are looking for your business to grow, and it has the potential to do so, there is every chance you will accelerate that growth by working with a growth coach.  Growing can be painful, there will be hurdles to overcome and changes to be made.

  • Tax Protection

    With HMRC becoming more spontaneous with tax investigations we strongly suggest that every business is insured against the cost of investigation. So strongly in fact, that we automatically build it in to our fixed fee agreements. Many of our clients have been very grateful for this insurance when HMRC have come knocking.

All Services

Pop in or give us a call

We'd love to hear from you

When it comes to supporting small enterprises, helping them grow whilst avoiding regulatory and commercial pitfalls, we have a weath of experience, expertise and a kettle - a very good kettle. If you think we could be a good fit, get in touch to see how we can add value to your business.

Contact
About us
    • Useful links

    • About
    • Services
    • Cloud Accounting
    • Jobs
    • Case studies
    • Blog
    • Events
    • Privacy Policy
    • Contact

    • hello@businessworksuk.co.uk
    • 0113 286 4486
    • Follow us

    • Facebook
    • Twitter
    • LinkedIn
    • Google+
    • Pop in

    • 4 Lidgett Lane
      Garforth
      Leeds, LS25 1EQ

COPYRIGHT © 2025 - ALL RIGHTS RESERVED