Figures obtained by law firm Pinsent Masons show an increase in the number of tax evasion prosecutions. HM Revenue and Customs (HMRC) hit 617 between April 2012 and March 2013, more than twice the 302 brought before the courts in 2011/12. Landlords and BTL investors can expect to find themselves in the firing line as the HMRC continues to crackdown on the middle-classes dodging tax.Jason Collins from the firm said 'Those in a position of trust or responsibility, such as lawyers, medical practitioners or business or financial consultants, are increasingly in HMRC’s line of fire, and we are also seeing an increase in buy-to-let investors falling foul of the system.'
Warning landlords by saying: 'Many people see buy-to-let as a substitute for a pension. It may produce similar financial results but they need to remember they can still incur significant tax liabilities.For new, part-time landlords who put their buy-to-let properties to the back of their mind to focus on their day job while the money rolls in, it can be quite easy to get caught out.'
The Government has set a target of more than 1,100 prosecutions by 2014/15.
Landlord insurance - professional rates
The Government's target should not be 1000 prosecutions; it should be 100% compliance and no prosecutions. OK; that's unlikely to happen, but HMG can get nearer to it with clear, comprehensible information to registered landlords on filling in our returns, timely and helpful reminders, and a co-operative approach to those who get it wrong.
ReplyDeleteThey should always try co-operation before confrontation.
When it's easier to get it right than wrong, it's easier to identify the wrongdoers.
Ah, well... we can dream...