There is around 1.4million landlords in the UK, out of these only around 500,000 have registered with HM Revenue and customs. As many as 900,000 owners of rental property could be probed by the taxman over claims that they have not declared profits they have made.
The banks have been warned they face tough scrutiny over the landlord loans they dish out, this could result in limited loans being granted.
Accountancy firms have reported that landlords are being targeted. It is thought many have failed to pay the correct tax and owe the Government around &550million a year.
Landlords must make sure they follow the correct procedure when it comes to buy-to-let schemes to avoid any tax issues and facing any legal action against them.
HMRC have created an online training package for landlords which aims to help new and existing landlords to meet their tax obligations. It also includes information around key dates, allowable expenses and a little about Capital Gains. Hunters lettings department has been following the developments and fully support the need for clarity and transparency regarding landlord taxes. We believe we are the first agency to have full information and links to the HMRC resources on our website.
Click here for further details.