With the total tax paid on rental property during that period been £1.8 billion, the unpaid estimate is more than 23 per cent.
A spokesperson for the HMRC said: “Lettings are a key area where we are losing money.” and continued to confirm that the HMRC were refocusing their attention to evasion on buy-to-let “This is an area where people try to cheat us.”
A “taskforce” launched in May to try and target the “highest-risk cases” of tax evasion by landlords in London, East Anglia, Leeds, York was expected to recover only £17 million in unpaid tax.
The spokesman introduced the idea of the HMRC offering a a ‘tax amnesty’ as part of a further strategy next year for those landlords ready to settle unpaid liabilities. Tax inspectors are also looking to use the Land Registry records to help identify potential evaders.
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This year has seen people boycott Amazon and Starbucks for tax evasion. I can't see people similarly boycotting the PRS, but the principle is self-evident.
ReplyDeleteThere is never any reason to try and avoid paying tax; the risks far outweigh any potential benefits. One of the most appealing things about becoming a BTL landlord is the tax breaks one can enjoy.
I think it's likely that many of these landlords aren't keeping their personal and tax funds separate, and come the end of the year find that they have eaten into some of their taxes. The solution is simple - employ an accountant. Your accounts and tax returns will be squeaky clean, and guess what? Yes, their services are tax-deductible!
All the best,
Brian
£17m?? Hardly worth it. They could go after the big corporations taking us all for a ride. Vodafone alone owes £5 billion. They can then leave the little man alone
ReplyDeleteMy problem with the Government is it that seem to go after the small man however big corporations who owe billions don't pay a penny !!!
ReplyDeleteIt's easier to cripple the individual who unlike a corporation has no options, Starbucks & alike can go offshore in a blink...
ReplyDelete